Electricity rate moves upward this March
MANILA, PHILIPPINES, 9TH March 2018 – Meralco recently announced that while electricity rates this March 2018 increased by P0.97 per kWh, only an P0.85 per kWh increase will be implemented this month in order to cushion the impact of the higher electricity rates on consumers. Meralco said that it will reflect the remaining P0.12 per kWh in the April bill.
The adjustment brings the overall rate to PhP10.32 per kWh from February’s PhP9.47 per kWh, equivalent to an increase of P170 in the bill of a residential customer consuming 200kWh.
Higher WESM charges bring up the generation charge
Of the P0.7424 per kWh increase in the generation charge, Meralco said that it will only reflect an increase of P0.6414 per kWh this March. The difference shall be implemented in the April billing. From P4.6548 per kWh in February, the generation charge for this month will be PhP5.2962 per kWh.
Contributing to the generation charge increase were higher charges from the Wholesale Electricity Spot Market (WESM), which increased by PhP1.4441 per kWh, because of tighter supply conditions in Luzon. The demand for power in the grid grew by around 366 MW in February due to warmer temperatures, while around 1,000 MW of generating capacity went on scheduled maintenance outage. The share of WESM purchases to Meralco’s total requirement this month was 19%.
Cost of power from Independent Power Producers (IPP) also increased by P0.2814 per kWh due to the annual scheduled maintenance outage of Quezon Power for the whole February supply month and continued depreciation of the peso. The share of IPP purchases to Meralco’s total requirement this month was 35%.
Meanwhile, charges from plants under Power Supply Agreements (PSA) decreased by PhP0.3634 per kWh due to improved average plant dispatch. PSAs provided 46% of Meralco’s total energy requirement.
Adjustments in Transmission Charge and other charges
The transmission charge to residential customers increased by PhP0.0503 per kWh due to higher ancillary service charges billed by the National Grid Corporation of the Philippines (NGCP). Correspondingly, taxes and other charges went up by PhP0.1583 per kWh this month.
Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 32 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 is at hand, 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, such as: (i) unplugging appliances when not in use to avoid “phantom load”, (ii) using the aircon at mid-setting or at 25 degrees Celsius for maximum efficiency, (iii) 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 with just one switch, and (iv) 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.