Power rate trends next year will be highly dependent on the power supply situation, fuel prices and exchange rate, according to the Manila Electric Co. (Meralco).
“Market prices for power is very much affected by power supply situation. Hopefully, if power supply situation improves in 2022, we might see a lowering in market prices.
Similarly, for fuel costs, mainly Malampaya natural gas and coal prices in the case of Meralco, if we see fuel prices temper down, we will also see tempering down of power rates,” said Lawrence Fernandez, Meralco vice president and head of utility economics department, in a briefing last Friday.
Meralco has been implementing a monthly increase in power rates since April, collectively at P1.3989 per kilowatt hour (kWh) to date.
From P8.3195 per kWh in March, overall power rate hit P9.7773 per kWh this month.
For this month alone, Meralco power rates went up by P0.3143 per kWh.
The ninth consecutive upward adjustment will be equivalent to an increase of around P63 in the bill of a residential customer consuming 200 kWh monthly.
Meralco said generation charge went up by P0.1997 per kWh to P5.5343 per kWh from the previous month’s P5.3346 per kWh as charges from power supply agreements increased by P0.2142 per kWh brought about by higher international coal prices and lower dispatch.
Charges from independent power producers (IPPs) decreased by P0.1541 per kWh, with the resumption of gas supply from Malampaya and charges from the wholesale electricity spot market (WESM) went down by P0.0649 per kWh as a result of improved Luzon power supply situation.
Transmission charges for residential customers increased by P0.0460 per kWh due to higher ancillary service charges with taxes, system loss and other charges also registering a net increase of P0.0686 per kWh.
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 77 months y.
WESM accounted for 16 percent of Meralco’s total power requirements for the month; IPPs, 38.2 percent and; PSAs, 45.7 percent.
