Customers of Manila Electric Co. (Meralco), the country’s largest power distributor, will enjoy almost a peso cut per kilowatt hour in their power bills this month due to reduced generation and transmission charges.
Meralco vice president and head of Corporate Communications Joe R. Zaldarriaga announced in a press briefing on Monday that April’s electricity rate is down by 99 centavos per kilowatt-hour (kWh) to P10.95 per kWh from P11.94 per kWh in March.
“The significant reduction in this month’s overall electricity rate more than wiped out the increases in power rates for the first quarter of the year,” Zaldarriaga said.
“Despite the rate reduction, Meralco continues to encourage its customers to continue practicing energy efficiency, especially during the summer when consumption historically increases anywhere from 10 to 40 percent due to warmer temperatures,” he added.
The price adjustment is equivalent to a reduction of P198 in the total electricity bill for a residential household consuming 200 kWh.
Based on the Meralco report, the generation charge decreased by 36 centavos per kWh due to lower costs from independent power producers (IPPs) and power supply agreements (PSAs). It offset the increase in charges from the Wholesale Electricity Spot Market (WESM).
Charges from IPPs declined by P1.07 per kWh, primarily due to lower costs from First Gas plants.
The main reason was Sta. Rita and San Lorenzo’s non-use of liquefied natural gas (LNG) and the continued withholding of incremental Malampaya gas costs for First Gas-Sta. Rita through its new gas sale and purchase agreement.
Meanwhile, the charges from PSAs decreased by 57 centavos per kWh due to fuel cost reductions of South Premier Power Corp. and San Buenaventura Power Ltd.
Charges from the WESM, on the other hand, increased by P1.01 per kWh due to tighter supply conditions. Notably, the demand and outage capacity also increased.
IPPs, PSAs, and WESM accounted for 29 percent, 46 percent, and 25 percent, respectively, of Meralco’s total energy requirements during this period.
On the other hand, the transmission charge was reduced by 47 centavos per kWh due to the ERC’s suspension of settlements in the Reserve Market, which resulted in a substantial increase in ancillary service charges in the March electricity rates.
While power bills are on a decline, motorists, on the other hand, have to endure another round of price increases this week.
In separate advisories yesterday, oil companies confirmed price increases of P1.10 per liter for gasoline, P1.55 per liter for diesel, and P1.40 per liter for kerosene.
Last week, the cost of gasoline per liter inched up by 45 centavos, while diesel prices experienced a decrease of P0.60, and kerosene dropped by P1.05.
Per the latest data from the Department of Energy as of 2 April, gasoline prices have had an adjustment of P8.20 year-to-date, while diesel prices have been adjusted by P4.50.