Power Rates Decline for the Third Month
This is The Third Straight Month That Meralco's Power Rates Have Declined
by Meralco Power Club
Electricity rates continued to decline for a third consecutive month in July, providing over six million customers of Meralco some financial relief amid the COVID-19 pandemic.
Meralco spokesman Joe Zaldarriaga on Monday announced a further P0.0286 per kilowatt-hour reduction to P8.6966, or a total savings of P6 for a typical household using 200 kWh a month.
“This month’s overall rate is the lowest since September 2017,” Zaldarriaga told a virtual news conference. For this year alone, he said, the total rate decrease amounts to more than one peso a kilowatt-hour.
Lawrence S. Fernandez, Meralco Vice President and Head of Utilities Economics, said Meralco again invoked the force majeure provisions on its supply agreements with various power generation companies, reducing generation charges. He said that for the past four months, the savings from force majeure claims and passed on to customers total P1.9 billion. Without the claims, the total power rate would have increased by P0.0717 per kWh, he noted.
Related: Meralco Promises No Disconnections Till September 30, 2020
Charges from the Wholesale Electricity Spot Market also declined by P1.7803 kWh due to reduction in line rental cost related to Meralco’s supply contracts, while the share of electricity sourced by Meralco from the spot market rose to 15.9 percent.
Fernandez said the stronger peso also helped temper the cost of power from Independent Power Producers (IPPs) due mainly to lower average plant dispatch with the five-day scheduled maintenance outage of modules 50 and 60 of the San Lorenzo power plant.
IPPs account for 33.2 percent of Meralco’s total supply while the share of electricity sourced from power supply agreements total 50.9 percent.
Lower transmission charge and the suspension of the Universal Charge-Environmental Charge also helped keep power rates down.
Fernandez said power consumption in Luzon is steadily rising, albeit still below the levels seen before the government imposed an enhanced community quarantine to control the spread of COVID-19. Even so, the gradual increase in consumption bodes well for economic recovery and future sales of Meralco, he said.
To learn more, contact your Relationship Manager, call 16210 or email us at corporatepartners@meralco.com.ph.
Story originally posted on Power Club.