Power rates down this month--- MERALCO
Lower spot market charges and cheaper fuel prices lead to
generation charge reduction
May 2015 overall rate decrease infographic
The
Manila Electric Company (Meralco) said that overall rates went down by PhP 0.70
per kilowatthour (kWh) this May. Said decrease is due to lower generation costs
from all power suppliers of Meralco.
For a typical household consuming 200 kWh, the overall
electricity bill will go down by PhP 140.
At PhP 9.98 per kWh, this month’s rate is lower by PhP 1.46 compared to
May 2014’s PhP 11.44 per kWh.
Lower generation costs from all suppliers
Generation charge decreased by PhP 0.60 per kWh from PhP 5.41
per kWh in April to PhP 4.81 per kWh this month. The reduction was mainly
driven by lower charges from the Wholesale Electricity Spot Market (WESM) and
Independent Power Producers (IPPs), as well as a reduction in the National
Power Corporation’s (NPC’s) Generation Rate Adjustment Mechanism (GRAM)
collections.
Cost of power obtained from the WESM decreased by PhP 4.19
per kWh due to less occurrences and shorter duration of power plant outages. The Luzon Grid remained on “normal” state
throughout the period of the Malampaya shutdown.
Meanwhile, average cost of the Independent Power Producers
(IPP) was lower by PhP 0.75 per kWh due to the improved utilization level of
the QPPL power plant and cheaper fuel prices obtained by the First Gas plants. The effect of the Malampaya shutdown was
moderated by lower prices of condensate and natural gas in the April supply
month versus March. Malampaya natural
gas underwent its quarterly repricing to reflect the lower cost of fuel. From $10.39
per gigajoule (GJ) the previous period, price of natural gas has been reduced by
19% to $8.44 per GJ.
Average rates of plants under the Power Supply Agreements
(PSAs) also decreased this month by PhP 0.06 per kWh. Finally, NPC’s collections of its GRAM
similarly went down by PhP 0.06 per kWh.
The share of IPPs, PSAs, and WESM to Meralco’s total power
requirements stood at 47, 43, and 10 percent respectively.
Adjustments in other bill components
In addition to the generation charge, taxes and other
charges registered reductions of PhP 0.07 and PhP 0.08 per kWh, respectively. These offset a PhP 0.05 per kWh increase in
the transmission charge.
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
(NGCP). Of the total bill, only the distribution, supply, and metering charges
accrue to Meralco.
Meralco’s distribution charge has not registered any
adjustment and has remained at the same level for 10 months now or since July
2014.
May 2015 overall rate decrease breakdown inforgraphic
Meralco supports Electrical Safety Month
Meralco
also reminded its customers to observe electrical safety in line with its
initiatives to support Electrical Safety Month.
The
government has declared the month of May of every year as Electrical Safety
Month. Meralco said it fully supports initiatives that raise public awareness
and educate electricity consumers on the proper use of electrical appliances
and gadgets so as to prevent and avoid electricity-related accidents.
For more electrical safety tips, customers may visit www.meralco.com.ph. They may also access Meralco’s Facebook page
(www.facebook.com/meralco) and
Twitter account (@meralco).
Changes in residential bills, April vs. May 2015
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