MM power rates up in Oct.

    Slight increase. Overall power rates will amount to P9.0862 per kWh this month in areas covered by Meralco.

    AfteR five consecutive months of decrease, Metro Manila power rates will go up slightly this month due to higher generation charge.

    Customers covered by the franchise of the Manila Electric Co. (Meralco) will pay P0.0448 more per kilowatt hour (kWh) this month, the company said yesterday.

    This is equivalent to an increase of around P9 in the bill of a residential customer consuming 200 kWh monthly.

    This also brings overall power rates to P9.0862 per kWh in October from September’s P9.0414 per kWh.

    Meralco said from P4.5191 per kWh last month, generation charge for October moved up to P4.5406 per kWh, a slight increase of P0.0215 per kWh.

    The increase was caused by smaller net settlement surplus refund for October from the Wholesale Electricity Spot Market (WESM).

    WESM charges dropped by P0.5290 per kWh due to improved power supply in the Luzon grid as there were fewer power plants on outage during the supply month.

    Cost of power from independent power producers (IPPs) decreased by P0.1512 per kWh due to the strengthening of the peso against the US dollar since around 97 percent of IPPs costs are dollar-denominated.

    These partly offset PSA charges which increased by P0.3694 per kWh mainly due to lower average plant dispatch.

    Transmission charge for residential customers this month slightly increased, by P0.0249 per kWh, as a result of higher ancillary service charges while taxes and other charges registered a decrease of P0.0016 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 51 months already.

    Payment for the generation charge goes to the power suppliers. Payment for the transmission charge goes to the National Grid Corporation of the Philippines while taxes and other public policy charges like the feed-in tariff allowance are collected by government.

    Forty-three  percent of total power requirement was sourced from power plans under PSAs, 40 percent from IPPs and 17 percent from WESM.