Ahead of official announcement of rate adjustments for the month of December, Manila Electric Co. (Meralco) said the cost of electricity in its franchise could again go down due to lower demand despite several power plant outages.
Joe Zaldarriaga, Meralco spokesman, said in a statement typhoons Quinta, Rolly and Ulysses caused transmission lines and several large plants going on forced outages which led to wholesale electricity spot market (WESM) prices to reach P20 per kilowatt hour (kWh) and P22 per kWh on October 27 and 28, respectively.
Zaldarriaga saidWESM prices may not be affected by the increase in plant outages as the Energy Regulatory Commission suspended the spot market’s operations on November 12 to 13.
He said peak demand in the Luzon grid also went down to 9,886 megawatts (MW) in November from 10,344 MW in October.
“In sum, the effect of more plant outages seems to be offset by a decrease in demand, so generation costs appear on a downward trajectory. It is worth mentioning that the overall power rate decrease since the start of 2020 is still more than P1 per kilowatt hour at P1.35 per kWh net overall rate decrease for the entire year,” Zaldarriaga said.
Meralco’s November power rates went down by P0.0395 per kWh, brought by the availability of more power supply compared to the previous month’s P8.5500 per kWh.