Power rates in Metro Manila will go down for the second consecutive month in August on lower generation charges, according to the Manila Electric Co. (Meralco).
The P0.2908 per kilowatt hour (kWh) reduction brings overall power rates of Meralco this month to P10.8991 from P11.1899 per kWh in July and translates to a decrease of P58 in the total bill of residential customers consuming 200 kWh monthly.
Meralco said generation charge registered its third consecutive reduction this month, down by P0.2137 to P6.3929 per kWh from P6.6066 per kWh in July.
Charges from the Wholesale Electricity Spot Market (WESM) declined P1.2873 per kWh as average demand in the Luzon grid fell by more than 200 megawatts due to the rainy season.
Billing from power supply agreements (PSAs) went down by P0.1688 per kWh due to lower fuel prices and the peso’s appreciation which affected around 26 percent of PSA charges that are dollar denominated.
The reductions in WESM and PSA charges offset a slight P0.0853 per kWh increase in charges from independent power producers (IPPs) due to lower average IPP dispatch as several units of natural gas-fired power plants underwent scheduled outage during the July supply month.
Meralco said the decrease in the price of Malampaya natural gas following its quarterly repricing and the peso appreciation that affected around 97 percent of dollar-denominated IPP charges mitigated the impact of reduced dispatch of natural gas-fired power plants.
Transmission and other charges which include taxes and subsidies, also registered a net reduction of P0.0771 as the collection of the feed-in-tariff allowance with a rate of P0.0364 per kWh remains suspended.
Meralco earns from distribution, supply and metering charges, which went down by P0.0360 per kWh in August 2022 and has not moved since.
The company said 47 percent of total power requirements for the month were from PSAs; 36 percent from IPPs and 17 percent from WESM. – Jed Macapagal
