By Juzel L. Danganan
MANILA, Sept. 7 (PNA) — The Manila Electric Company (Meralco) on Monday announced a PhP0.57 centavos per kilowatt-hour decrease of its power rate due to a reduction in the generation charge.
”For a typical household consuming 200 kWh, the overall electricity bill will go down by PhP114 compared to last month,” the company said in a statement.
Last month, Meralco’s power bills had a reduction of PhP0.26 per kWh or PhP52 for those with a typical household consumption of 200 kWh a month.
The distribution utility explained the lower power bills was caused by lower generation costs, which fell by PhP0.42 per kWh to PhP4.13 per kWh this month — the lowest generation charge since January 2010.
Meralco attributed the lower generation costs to the stable power supply from its power suppliers, namely: South Premiere Power (Ilijan), Sem-Calaca Power, Quezon Power, and Therma Luzon (Pagbilao), compared to last month.
The company said Ilijan’s dispatch levels went up to 81 percent from 48 percent last month, adding lower fuel costs were also contributed by natural gas-supplier Malampaya that decreased rates for First Gen’s power plants (Sta. Rita and San Lorenzo).
Meralco further said the Malampaya natural gas supply restriction — which brought adjustments (cover cost deduction) for prior months — has also plunged the generation charges.
Meralco, however, pointed out that Wholesale Electric Spot Market charges had increased by PhP0.006 per kWh.
For last month, the distribution utility has sourced its power from Power Supply Agreements at 47 percent, Independent Power Producers (IPPs) at 46 percent and the WESM at 7 percent.
Meralco also said the transmission charge had decreased by PhP0.04 per kWh caused by lower power delivery service and ancillary service charges.
Taxes and other charges, on the other hand, went down by PhP0.05 per kWh and PhP0.06 per kWh, respectively, according to Meralco.
It also noted its distribution, supply and metering charges will remain the same after its reduction in July.
Meanwhile, the listed firm stressed it does not profit from the generation and transmission charges.
“Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the National Grid Corporation of the Philippines,” it added. (PNA)