Higher gen costs push bills higher
WESM charges went up by 56 centavos per kWh due to higher average capacity on outage in the Luzon grid, which increased by around 418 megawatts or MW
Daily TribuneWESM charges went up by 56 centavos per kWh due to higher average capacity on outage in the Luzon grid, which increased by around 418 megawatts or MW
Photo from PNA
Power rates across the Manila Electric Co., or Meralco, franchise slightly went up by 8.5 centavos this month due to higher generation charges.
The price adjustment, according to Meralco, will translate to an overall rate increase for a typical household to P11.34 per kWh from P11.26 per kWh in December.
For residential customers consuming 200 kilowatt-hour, or kWh, the adjustment is equivalent to a minimal increase of around P17 in their total electricity bill.
The overall rate increase was primarily due to the higher generation charge, which inched up by 11 centavos to P6.65 per kWh from P6.53 per kWh last month, owing to the higher cost of power from the Wholesale Electricity Spot Market, or WESM, and Independent Power Producers, or IPP.
WESM charges went up by 56 centavos per kWh due to higher average capacity on outage in the Luzon grid, which increased by around 418 megawatts or MW.
Charges from IPPs also increased by 14 centavos per kWh due to higher fuel costs of First Gas — Sta. Rita and San Lorenzo resulted from the use of imported liquefied natural gas in the testing and commissioning of its LNG terminal.
Above 50% from IPPs, WESM
WESM and IPPs accounted for 20.5 percent and 36.5 percent, respectively, of Meralco’s total energy requirement for the period.
Tempering the increase was a 15 centavos per kWh reduction in charges from Power Supply Agreements with the lower charges from Emergency PSAs and higher excess energy deliveries from some PSAs, which were priced at a discount.
The share of PSAs for the December supply month was at 43 percent.
Transmission and other charges registered a net reduction of 0.2 centavos per kWh.
The collection of the feed-in tariff allowance (FIT-All), at the rate of 0.3 centavos per kWh, remains suspended as directed by the Energy Regulatory Commission.
Meralco’s distribution charge, on the other hand, has not moved since the 0.4 centavos per kWh reduction for a typical residential customer beginning August 2022.
With the implementation of the Lifeline Rate Program in full swing, Meralco urged its qualified customers, particularly beneficiaries of the Pantawid Pamilyang Pilipino Program and other marginalized households with certification from their local Social Welfare and Development Office, to apply for inclusion in the subsidy mechanism to continue getting discounts on their electricity bills.
