Meralco rates lower by P0.21/kwh in Jan.

by Myrna Velasco – January 7, 2016

from Manila Bulletin

Customers of Manila Electric Company (Meralco) will experience another relief in their electric bills this month as the utility firm’s charges will be down by P0.21 per kilowatt hour.

For a typical household with 200-kwh usage, the company noted that the total reduction will be P41.30. The overall rate billed had been at P8.40 per kwh.

“The reduction in the overall rates was primarily due to the generation charge, which decreased by P0.21 per kwh last month,” the utility firm stressed.

For this January billing in particular, the generation charge was at P3.92 per kwh – noted to be the lowest logged so far since January, 2010.

The cost reduction, it was emphasized, mainly came from its power supply agreements (PSAs) with private generation companies – of which total cost decline had been at P0.49 per kwh.

It stressed that “this was mainly due to the reduction in capacity fees of Pagbilao, Sual, Calaca and Ilijan.” There had also been cost offset from the higher charges from the independent power producers (IPPs) and the Wholesale Electricity Spot Market.

The utility firm explained “this reduction in capacity fees is due to the annual reconciliation of outage allowances under the contracts approved by the Energy Regulatory Commission.”

The increase in the average rates of capacity contracted from the IPPs had been P0.04 per kwh, emphasizing that this was “due primarily to a lower dispatch of QPPL (Quezon Power Philippines Ltd. Co.) and San Lorenzo.”

For the WESM, the increase in charges had been P0.35 per kwh which was “largely caused by billing adjustments from prior periods,”

The other charges that went down include taxes by P0.02 per kwh; while the transmission charge went up by P0.02 per kwh.