Electricity rate moves upward this February after two-month decrease
MANILA, PHILIPPINES, 8TH February 2018 – After two consecutive months of decreases in overall electricity rates totaling PhP0.9045 per kWh for a typical household, Meralco announced that power costs increased by P1.08 per kWh this February 2018.
Around 70% of the increase, or P0.75 per kWh will be implemented this month and the remaining 30% will be reflected in the March bills. Meralco said that the full increase was not implemented to cushion the impact of higher electricity rates on consumers, cognizant of the fact that there were recent price increases on fuel and other basic commodities.
The adjustment brings the overall rate to PhP9.47 per kWh from January’s PhP8.72 per kWh, equivalent to an increase of P150 in the bill of a residential customer consuming 200kWh.
Higher PSA and IPP charges bring up the generation charge
Of the P0.8469 per kWh increase in the generation charge, Meralco said that it will reflect an adjustment of P0.5780 per kWh this February, or from a generation charge of PhP4.0768 per kWh in January to PhP4.6548 per kWh this month. The difference shall be implemented in the March bill.
The generation charge increase is primarily due to higher charges from plants under Power Supply Agreements (PSA) and Independent Power Producers (IPP).
After the reduction in PSA charges reflected in January due to the early completion of annual capacity fee payments for the previous year, capacity fees returned to levels prescribed in the PSAs. The return to normal levels of capacity fees, particularly of Pagbilao and Ilijan, was the main reason for the PhP1.7607 per kWh increase in PSA charges, to be reflected this February.
Charges from the Independent Power Producers (IPPs) also increased by PhP0.3430 per kWh due to the Peso depreciation vis-à-vis the US Dollar, higher Malampaya natural gas prices following the quarterly repricing, and lower average plant dispatch. PSAs and IPPs provided 40.6% and 40.7% of Meralco’s total energy requirement, respectively.
Meanwhile, charges from the Wholesale Electricity Spot Market (WESM) slightly decreased by PhP0.0041 per kWh due to lower power demand in the Luzon grid. The share of WESM purchases to Meralco’s total requirement this month was 18.7%.
Adjustments in Transmission Charge and other charges
The transmission charge to residential customers decreased by PhP0.0372 per kWh while taxes and other charges went up by PhP0.2092 per kWh this month.
Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 31 months, after these registered reductions in July 2015. Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the FIT-All are remitted to the government.
Meralco provides energy efficiency tips for customers
As summer approaches, and with the normalization of rates this month, Meralco once again encourages its customers to continue practicing energy efficiency initiatives to help manage their electricity consumption. These include everyday household tips that may help save energy. Simple tips such as unplugging appliances when not in use to avoid “phantom load.” Using the aircon at mid-setting or at 25 degrees Celsius for maximum efficiency. Using a power board or strip which can supply power to several appliances at once and allows a user to conveniently turn them off simultaneously using just one switch. Maximizing natural light during daytime and keeping appliances well maintained to ensure optimal performance. For more helpful tips, customers may visit Meralco’s website at www.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco.