TYPICAL HOUSEHOLDS in Metro Manila will see a reduction of around P24 in their electricity bills this month due to lower generation charges, distribution utility Manila Electric Co. (Meralco) said on Tuesday.

Meralco in a statement said the overall rate fell by P0.1185 per kilowatt-hour (kWh) to P9.5842 per kWh in February, from the P9.7027 per kWh in January.

A typical household is defined as one that consumes 200 kWh. Households consuming 300 kWh, 400 kWh and 500 kWh can expect to see their February bills reduced by P35, P46, and P56, respectively.

“The generation charge for February decreased by P0.2305 per kWh to P5.1957 per kWh from P5.4262 last month, due to lower charges from Independent Power Producers (IPPs) and the Wholesale Electricity Spot Market (WESM), which more than offset an increase in the rate from Power Supply Agreements (PSAs),” Meralco said.

Meralco noted charges from IPPs fell by P0.3395 per kWh, after Quezon Power resumed operations in January and First Gas – Sta. Rita increased its output after a maintenance outage in December.

“The IPP charges also reflected a reimbursement from SPEx (Shell Philippines Exploration B.V.) to First Gas covering a portion of incremental fuel cost incurred in relation to the use of liquid fuel during unplanned Malampaya gas supply restrictions. These were able to more than offset the increase in Malampaya natural gas prices resulting from its quarterly repricing, and an increase in coal prices,” it added.

SPEx is the operator of the Malampaya gas-to-power project.

WESM charges dropped by P13.1277 per kWh after Meralco significantly reduced purchases from the spot market, tempering the impact of higher spot market prices in January.

Meralco said the tight supply condition led to the continued high WESM prices, which triggered the imposition of the secondary price cap 28.37% of the time.

“[Had we purchased more from the spot market], it would’ve put pressure upwards,” Meralco Vice-President and Head of Corporate Communications Agapito Joe D. Zaldarriaga said at a media briefing on Tuesday.

Meanwhile, PSA rates went up by P0.1631 per kWh, due to the lower demand that led to a drop in excess energy deliveries from AC Energy, San Miguel Energy Corp., and South Premiere Power Corp. and the decline in the average PSA dispatch.

IPPs accounted for 52.2% of Meralco’s energy requirement, followed by PSAs and the WESM with 47.4% and 0.4%, respectively.

Transmission charge for residential customers jumped by P0.0454 per kWh due to higher ancillary service and power delivery service charges. Taxes and other charges went up by P0.0666 per kWh, with the resumption of local franchise tax and higher effective value-added tax (VAT) rates.

The collection of the universal charge-environmental charge worth P0.0025 per kWh is still suspended.

Meralco’s distribution, supply, and metering charges have remained unchanged for 79 months now.

The company said the ongoing refund of distribution charges, which was ordered by the Energy Regulatory Commission (ERC), tempered the rate hike for February.

Asked if rates will likely go up next month, Mr. Zaldarriaga said historical data showed a rise in consumption patterns of customers ahead of the summer season.

“At least the past two months, we have had, in some way, a reprieve from electricity costs despite the surge in fuel prices,” he added.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — M.C.Lucenio

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