THE Manila Electric Company (Meralco) yesterday announced a power rate increase of P0.23 per Kilowatt hour KWH this month.
The adjustment amounts to a P45 increase in the total bill of a typical residential household consuming 200kWh.
The rate increase this month is mostly due to the upward movement in the generation charge. Contributing to the increase is the hike in the cost of power sourced from the Independent Power Producers (IPPs) and Wholesale Electricity Spot Market(WESM).
Overall generation charge increased from P4.90 per kWh in March to P5.10 per kWh for this month. Contributing to the increase are the P0.39 per kWh increase in the cost of power sourced from IPPs and the P0.78 per kWh increase in WESM price.
Higher IPP costs were primarily due to the low dispatch of Quezon Power, while the increase in WESM prices can be attributed to plant outages and higher demand. Power demand in Luzon this month rose by around 790 MW from February.
The share of IPPs and WESM purchases in Meralco’s total requirements are 34% and 14%, respectively.
On the other hand, there was a decrease of P0.36 per kWh in power supplied through Meralco’s Power Supply Agreements (PSAs) and Interim Power Supply Agreements (IPSAs). The share of PSAs and IPSAs this month stood at 52%.
There was a slight decrease of P0.0629 per kWh in the transmission charge of residential customers due to a decrease in Ancillary Service Charges. Taxes and other charges went up by a combined amount of around P0.094 per kWh
Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 21 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 National Grid Corporation of the Philippines (NGCP).