Electricity rate moves upward this April
MANILA, PHILIPPINES, 6TH April 2018 – Meralco announced an increase in overall electricity rates for April 2018, amounting to PhP0.2250 per kWh for a typical household. The higher April rate is mainly due to the P0.1773 per kWh increase in the generation charge.
The adjustment this month brings the overall rate to PhP10.55 per kWh from March’s PhP10.32 per kWh, equivalent to an increase of around P45 in the bill of a residential customer consuming 200kWh.
Last month, while electricity rates in March 2018 increased by P0.97 per kWh, only a P0.85 per kWh increase was implemented in order to cushion the impact of the higher electricity rates on consumers. Meralco said that the remaining balance is already reflected in the rates this April.
Higher WESM charges bring up the generation charge
From P5.2962 per kWh in March, the generation charge for this month will be PhP5.4735 per kWh.
Contributing to the generation charge increase were higher charges from the Wholesale Electricity Spot Market (WESM), which increased by PhP1.6441 per kWh because of tighter supply conditions in the Luzon Grid. With warmer temperatures, the demand for power in the grid increased by about 357 MW. Luzon was placed on Yellow Alert by the National Grid Corporation of the Philippines (NGCP) on February 26 due to forced plant outages and restrictions in the supply of natural gas from Malampaya that affected the output of several power plants. Natural gas supply from Malampaya continued to experience restrictions from February 26 to 27, March 3 to 5, and March 8 to 14. The share of WESM purchases to Meralco’s total requirement this month was 15%.
The higher WESM charges were slightly offset by a P0.1412 per kWh decrease in the cost of power from Independent Power Producers (IPP), due to improved average plant dispatch. The share of IPP purchases to Meralco’s total requirement this month was 39%.
Meanwhile, charges from plants under Power Supply Agreements (PSA) remained stable, inching up by PhP0.0077 per kWh. PSAs provided 46% of Meralco’s total energy requirement.
Adjustments in Transmission Charge and other charges
Transmission charge to residential customers slightly increased by PhP0.0065 per kWh due to higher ancillary service charges billed by the National Grid Corporation of the Philippines (NGCP). With the higher generation charge, taxes and other charges also went up, by PhP0.0412 per kWh this month.
Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 33 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 power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the FIT-All are remitted to the government.
Meralco provides energy efficiency tips for customers
As summer is at hand, Meralco once again 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.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco.