Power rates in areas served by the Manila Electric Co. (Meralco) will increase this month due to higher transmission charges.
Oil prices, however, are down this week.
Meralco power rates will go up by P0.0965 per kilowatt hour (kWh) this month, bringing overall power rates to P9.0036 per kWh from last month’s P8.9071 per kWh.
The fifth consecutive upward adjustment will be equivalent to an increase of around P19 in the bill of a residential customer consuming 200 kWh monthly.
Meralco said transmission charge for residential customers increased by P0.1331 per kWh from P0.5992 in July to P0.7323 per kWh this month due to higher ancillary service charges, which accounted for about 36 percent of the National Grid Corporation of the Philippines’ total transmission charge.
Meralco said if not for its continued implementation of the distribution rate true-up refund which began last March, the increase could have been higher. The refund will be implemented until a total of P13.9 billion is returned to customers over a period of 24 months.
Generation charge for August registered a slight increase of P0.0615 per kWh from P4.8707 last month to P4.9322 per kWh this month as charges from independent power producers (IPPs) went up by P0.7389 per kWh due to the effects of foreign exchange rates and higher prices of fuel from Malampaya.
Amid the increase in transmission and IPP charges, the cost of electricity from power supply agreements (PSAs) and the wholesale electricity spot market (WESM), registered reductions of P0.0347 and P2.6903 per kWh, respectively.
The slight increase in the generation charge also more than offset by lower subsidies, taxes, and other charges, which decreased by P0.0981 per kWh as the collection of universal charge-environmental charge amounting to P0.0025 per kWh remains suspended.
Meralco’s interim distribution rates consisted of distribution, supply and metering charges, the only component in the bill paid to the company, remained at P1.381 per kWh for 73 months.
Meanwhile, oil companies are rolling back prices of petroleum products after a brief hike last week, driven by the global drop in crude prices due to fears that travel restrictions with the spread of the Delta variant affect demand for fuel.
According to the Department of Energy, the latest average Manila price per liter of gasoline (RON95) is at P61.35, diesel at P45.75 and kerosene, P50.88.
Seaoil and Caltex cut prices by P0.65 per liter of gasoline, P0.70 per liter of diesel and P0.75 per liter of kerosene.
PTT and Clean Fuel adjusted prices of gasoline by P0.65 per liter and diesel products by P0.70 per liter.
As of August 3, year-to-date adjustments on fuel prices summed up to a net increase of P13.90 per liter for gasoline, P11.10 per liter for diesel and P9.45 per liter for kerosene.
Reuters reported as of Friday last week, Brent crude oil futures settled at $70.70 a barrel while US West Texas Intermediate crude futures ended at $68.28 a barrel.
The report said global demand was affected after Japan announced plans to expand emergency restrictions to more regions of the country while China already announced flight cancellations in some cities. – J. Macapagal
