Meralco bills for January cut by 21 centavos | Inquirer News

Meralco bills for January cut by 21 centavos

By: - Reporter / @amyremoINQ
/ 07:19 AM January 08, 2016
MANILA, Philippines – Customers of the Manila Electric Co. (Meralco) can expect a lower electricity bill in January as the generation charge fell by 21 centavos to P3.92 per kilowatt-hour (kWh)—reportedly its lowest level since January 2010.
Households consuming 100 kWh a month could expect their power bill to be lower by P17.67, while those who consume 200 kWh will see their bill trimmed by P41.30, Lawrence S. Fernandez, head of utility economics for Meralco, said in a text message.

For households consuming 300 kWh, 400 kWh and 500 kWh monthly, the reduction would be  P61.95, P82.60, and P103.25, respectively, Fernandez added.

In a separate statement issued on Thursday, Meralco said the lower generation charge was due to a 49-centavo per kWh decrease in the cost of electricity being sourced under its power supply agreements  (PSAs).


The decrease in electricity cost was in turn the result of the reduction in capacity fees of the Pagbilao, Sual, Calaca, and Ilijan power plants,  the power firm explained.

The lower cost of power from the PSAs had offset the higher cost of electricity being sourced by Meralco from independent power producers (IPPs) and the Wholesale Electricity Spot Market (WESM).


According to Meralco, the average cost of electricity sourced from the IPPs rose slightly by 4 centavos per kWh given the lower dispatch of the Quezon Power and San Lorenzo facilities. The cost of power from the WESM, meanwhile, registered a 35 centavo per kWh increase, largely caused by billing adjustments from prior periods.

In December, Meralco sourced 48.7 percent of its electricity requirements from the IPPs, 46.7 percent from the PSAs, and 4.6 percent from the WESM.

Following the decrease in generation charge, taxes also decreased by 2 centavos per kWh, while the transmission charge rose by 2 centavos per kWh. Meralco’s distribution, supply, and metering charges have, meanwhile, remained unchanged.

The power distribution company has always said it does not earn from pass-through charges, such as the generation and transmission charges. Payment for generation charges goes to power suppliers, while those for transmission charges go to the National Grid Corporation of the Philippines (NGCP).

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TAGS: Calaca power plant, electricity bill, Electricity production and distribution, Ilijan power plant, independent power producers, Lawrence S. Fernandez, Manila Electric Company, MERALCO, Nation, News, Pagbilao power plant, power supply agreements, Regions, Sual power plant, WESM, Wholesale Electricity Spot Market
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