by Philippine News Agency, January 7, 2015
from Philippine Daily Inquirer
MANILA – Power bills will decrease by Php 38 for households with 200 kilowatts per hour (kWh) monthly consumption, according to the Manila Electric Company (Meralco).
”For this month, power rates will go down by P0.19 per kWh for a typical household consuming 200 kWh, equivalent to a decrease of around P38 in the bill,” Meralco said in a statement Wednesday.
The power firm noted the last three month’s total power bill decrease amounts to 79 centavos per kWh, a total of Php 158 for households with 200 kWh monthly consumption.
The distribution company attributed the reduced 22 centavo lower generation charge to the declined cost of coal and the stable power supply flow. It was previously at Php 4.94 per kWh last December and costs Php 4.72 per kWh this January.
The stable power supply was prompted by the normal operations of power plants in December, causing lower charges from plants contracted through Power Supply Agreement (PSAs), a reduction of 73 centavos per kWh.
Moreover, some of Luzon power plant’s fuel-coal – have also dived by nearly USD 2 per metric ton.
Meralco pointed out the Php 4.72 per kWh generation charge is the lowest in the past 15 months.
However, charges from Independent Power Producers (IPPs) and the Wholesale Electricity Spot Market (WESM) have increased by P0.24 and P1.68 per kWh, respectively.
Meralco cited WESM rates increased due to additional payment and compensation asked by power generators, after it was affected by the February to July Secondary WESM price cap.
Overall, the distribution utility said total power requirements for December came from PSAs at 52 percent, IPPs at 45 percent and WESM at 3 percent.
Further, Meralco warns the lower generation charge may not continue in the coming months due to the expected warmer temperatures, the scheduled shutdown of the Malampaya gas facility and the increased threshold price of the WESM at Php 9.
The total 19 centavos per kWh decrease was also ignited by other bill components such as decrease in taxes, system loss charges and subsidies, lowered by Php 0.026 and Php 0.011 respectively.
On the other hand, the company said transmission charge increased by Php 0.062 per kWh.
Meralco reiterates 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 such as the plants selling to Meralco through the WESM and under the PSAs, as well as the IPPs. Payment for the transmission charge, meanwhile, goes to the National Grid Corporation of the Philippines (NGCP),” it said.
The distribution utility maintains it only earns from the distribution, supply, and metering charges.
Meanwhile, Meralco Spokesman Joe Zaldariagga told PNA the disputed Feed-In-Tariff (FIT) charge will be included in the billing statement of its customers by February. Thus, the Php .04 per kWh charge will only affect billings next month.