Following five straight months of reductions,
consumers still enjoy a net decrease of almost P1.47 per kWh since April 2019
MANILA, PHILIPPINES, 8TH October 2019 – The Manila Electric Company (MERALCO) announced today a slight upward adjustment of power rates, as overall electricity rates for a typical household consuming 200 kWh increased to P9.0862 per kWh this October from last month’s P9.0414 per kWh. The upward adjustment of P0.0448 per kWh will mean an increase of around P9 in the typical household’s total bill.
Even with the slight increase this month, following five straight months of decrease, there has been a total downward adjustment of electricity rates amounting to almost P1.47 per kWh since April 2019.
Small NSS refund leads to overall generation charge increase
From P4.5191 per kWh last month, the generation charge for October inched up to P4.5406 per kWh, a slight increase of P0.0215 per kWh.
The increase is due to a smaller Net Settlement Surplus (NSS) refund for October from the Wholesale Electricity Spot Market (WESM). WESM charges decreased by P0.5290 per kWh driven by an improved power supply situation in the Luzon grid as there were fewer power plants on outage during the supply month.
The WESM charges this month also included the second installment of the NSS refund, as directed by the Energy Regulatory Commission (ERC) in an Order dated August 1, 2019. It may be recalled that the power rate reduction last September was partially due to an NSS refund of approximately P684 million. For this October, NSS refund is smaller, at around P381 million.
The share of WESM to Meralco’s supply needs remained at 17%.
Meanwhile, the cost of power from the Independent Power Producers (IPPs) decreased by P0.1512 per kWh due to a strengthening of the Peso against the US Dollar. Around 97% of IPPs costs are dollar-dominated. These partly offset PSA charges, which increased by P0.3694 per kWh mainly due to lower average plant dispatch. IPPs and PSAs provide 40% and 43%, respectively, of Meralco’s supply needs.
Movements in Transmission and Other charges
This month, transmission charges for residential customers slightly increased by P0.0249 per kWh as a result of higher ancillary service charges. Meanwhile, taxes and other charges registered a decrease of P0.0016 per kWh.
Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 51 months, after these registered reductions in July 2015. 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 NGCP. Taxes and other public policy charges like the FIT-All rate are remitted to the government.
Meralco provides energy efficiency tips for customers
Meralco encourages its customers to continue practicing energy efficiency initiatives to help manage their electricity consumption. These include everyday household tips that may help save energy, such as: (i) unplugging appliances when not in use to avoid “phantom load”, (ii) using the aircon at mid-setting or at 25 degrees Celsius for maximum efficiency, (iii) using a power board or strip which can supply power to several appliances at once and allows a user to conveniently turn them off simultaneously with just one switch, and (iv) maximizing natural light during daytime and keeping appliances well maintained to ensure optimal performance. For more helpful tips, customers may visit Meralco’s website at www.merlaco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco. (Meralco/PR)