Meralco rates to go up slightly this month
By Sheldeen Joy Talavera, Reporter
RESIDENTIAL CUSTOMERS in areas served by Manila Electric Co. (Meralco) will see a slight increase in their electricity bills this month due to the higher transmission charge.
The overall rate will go up by P0.0327 per kilowatt-hour (kWh) to P11.6339 per kWh in August from P11.6012 per kWh in July, Meralco said in a statement on Monday.
Households consuming 200 kWh will see a P7 increase in their bills this month. Those consuming 300 kWh, 400 kWh, and 500 kWh will see their bills go up by P10, P13, P16, respectively.
“Driving this month’s overall rate adjustment is the P0.1086 per kWh increase in the transmission charge for residential customers due to higher charges of the grid operator for ancillary service, which covers reserves necessary to maintain grid reliability,” the power distributor said.
Ancillary service charges rose by more than 50% as charges for contingency and dispatchable reserves doubled. These are deployed to support the transmission of power from generators to consumers to maintain reliable operations.
Joe R. Zaldarriaga, Meralco’s vice-president and head of corporate communications, said during a briefing that the increase in transmission charge canceled out the five-centavo reduction in generation charge.
Charges from independent power producers (IPPs) went down by P0.2974 per kWh due to higher IPP dispatch and peso depreciation that affected around 97% of the cost that was dollar denominated.
“These were also able to more than offset the increase in Malampaya natural gas price following its quarterly repricing,” Meralco said.
Prices at the Wholesale Electricity Spot Market (WESM) dropped as Luzon’s average peak demand went down by 690 MW last month.
However, the effective WESM charges for the month increased by P0.5940 per kWh as the company added the third of four installments of deferred May WESM costs ordered by the Energy Regulatory Commission (ERC).
Charges from power supply agreements (PSA) climbed by P0.0421 per kWh, driven by higher fuel-related costs.
IPPs, WESM, and PSAs accounted for 33%, 27%, and 40% of the company’s total energy requirement for the period.
Meanwhile, the Universal Charge for Missionary Electrification decreased by P0.0433 per kWh following completion of the recovery of ERC-approved true-up rate. This universal charge is collected from electricity end-users to fund electrification programs of the National Power Corp.
Taxes and other charges rose by P0.0177 per kWh.
“Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) are all remitted to the government,” Meralco said.
Distribution charge has remained unchanged at P0.0360 per kWh since August 2022.
EXPECTED ADJUSTMENTS
Meralco said that there may be a possible increase in generation costs from First Gas – Sta. Rita and San Lorenzo, which use Malampaya gas.
The old gas sale and purchase agreement (GSPA) between First Gas and the Malampaya Consortium had expired in July, so the supply of Malampaya natural gas to San Lorenzo is now governed by the new GSPA, similar to Sta. Rita.
However, the previous pricing formula for both plants continue to be applied, pending regulatory approval of the new GSPA.
“Once the new GSPAs are approved, this will certainly affect the generation charges of Sta. Rita and San Lorenzo,” Mr. Zaldarriaga said.
Meralco also anticipates the possible impact of the remaining 70% of the amount due on reserve market transactions for the March billing month.
To recall, the regulator suspended the billing and settlement on the reserve market in March after significant price increases in reserve power costs.
In a July 30 statement, the ERC ordered the lifting of the suspension. The regulator also ordered the Independent Electricity Market Operator of the Philippines to recalculate the resulting reserve trading amounts for the periods of February and March and adjust the value for the remaining 70% for the March billing month.
Meanwhile, customers may seek relief in the next two months as the collection of the deferred WESM amounts will end in September.
“Nakikita natin na pagpasok ng October, malaki ang posibilidad na mayroon na tayong pagbaba sa singil ng kuryente (We are seeing a huge possibility of a decrease in electricity bill in October),” Mr. Zaldarriaga said.
Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.