Power rates in Metro Manila will go down by P0.1185 per kilowatt hour (kWh) due to lower generation charges, according to the Manila Electric Co. (Meralco).
The second straight month of reduction brings down overall power rates to P9.5842 per kWh from last month’s P9.7027 per kWh. It is equivalent to a decrease of around P24 in the total bill of residential customers consuming 200 kWh monthly.
Meralco said generation charge for February decreased by P0.2305 per kWh to P5.1957 per kWh from P5.4262 last month due to lower charges from independent power producers (IPPs) and the wholesale electricity spot market (WESM) which more than offset an increase in the rate from power supply agreements (PSAs).
Charges from IPPs went down by P0.3395 per kWh due to higher plant dispatch of power plants as well as from reimbursements enjoyed by power producers because of the unplanned Malampaya gas supply restrictions.
WESM charges this month decreased by P13.1277 per kWh because of significant reduction in Meralco’s purchases that also mitigated the impact of higher spot market prices last month.
However, Meralco said rates from PSAs increased by P0.1631 per kWh owing to lower demand that led to lower excess energy deliveries which are priced at a discount.
Transmission charge for residential customers also increased by P0.0454 per kWh due to higher ancillary service and power delivery service charges while taxes and other charges also registered a net increase of P0.0666 per kWh mainly resulting from the resumption of local franchise tax recovery and higher effective value-added tax rates this month.
Collection of the Universal Charge-Environmental Charge amounting to P0.0025 per kWh also remains suspended. This month’s rate still reflects the P0.2761 per kWh refund that was ordered by the Energy Regulatory Commission over a period of 24 months or until the P13.9 billion amount is fully refunded.
Meralco’s interim distribution rates comprised of distribution, supply and metering charges, the only bill component paid to the company remained at P1.381 per kWh for 79 months already.
The company 52.2 percent of power requirements were from IPPs; 47.4 percent from PSAs and 0.4 percent from WESM.
