Meralco announces higher power rate in November
Power retailer Manila Electric Company (Meralco) announced Wednesday a rate increase of P0.4201 per kilowatt-hour (kWh) in October on higher generation charges.
Meralco said the increase would bring the overall rate for households to P11.8198 per kWh this month from P11.3997 per kWh in September.
Residential customers consuming 200 kWh would see an increase in their electricity bill equivalent to around P84.
Meralco said the October generation charge went up by P0.3015 per kWh to P7.1267 per kWh from P6.8252 per kWh in September because of higher charges from independent power producers (IPPs) and power supply agreements (PSAs).
Charges from IPPs increased P0.4599 per kWh mainly due to higher cost of fuel utilized by the First Gas plants. The gas supply restrictions compelled the 1,000-megawatt First Gas-Sta. Rita and 500-MW First Gas-San Lorenzo power plants to switch to more expensive alternative fuel to ensure supply continuity.
Charges from PSAs also went up by P0.1658 per kWh, partly because of the forced shutdown of the 420-MW First NatGas-San Gabriel power plant from Sept. 18 to 24 due to the gas supply restriction. Lower coal prices abated the increase in PSA charges.
Meralco implemented a second emergency power supply agreement (PSA) with South Premiere Power Corp. beginning August covering 330-MW baseload supply to replace the terminated PSA with Sual Power Inc.
IPPs and PSAs accounted for 35 percent and 47 percent, respectively, of Meralco’s total energy requirement for the September supply month.
Charges from the Wholesale Electricity Spot Market (WESM), the trading floor of electricity slightly increased P0.0525 per kWh mainly due to adjustments.
The supply situation in the Luzon grid improved in September as average demand and average capacity on outage were both lower, by around 165 MW and 315 MW, respectively.
Meralco sourced 18 percent of its total energy requirement from WESM in September.
The transmission charges for residential customers increased P0.0264 per kWh due to higher ancillary service charges. Because of the higher generation and transmission charges, taxes and other charges subsequently registered a net increase of P0.0661 per
