Meralco hikes October billing

Meralco hikes October billing by P0.12 per kWh

By Alena Mae S. Flores
Manila Standard - online


Manila Electric Co., the country’s biggest power distributor,  said Monday its October billing  will go up by P0.12 per kilowatt-hour due to higher generation, transmission and other pass-through costs.

Meralco said in a statement the October generation charge rose to P5.50 per kWh from P5.40 per kWh in September while transmission and other rates increased.

“Following a P1.73 per kWh reduction in power prices in September, a residential customer with a consumption of 200 kWh will see a P0.12 per kWh increase in their electric bill this October as a result of higher generation, transmission and other pass-through costs,” Meralco said.

A P0.12 per kWh hike translates into an increase of P24 in the electricity bill of Meralco customers with a monhtly consumption of 200 kWh.

The company attributed the higher generation charges to increased charges of P1.16 per kWh from the Wholesale Electricity Spot Market. WESM acts as the trading floor for electricity supplies.

Meralco said electricity consumption in September increased after the holidays while rainy weather in August depressed the demand for power.

The reduction in the available generation capacity and restriction in the output of coal-fired plants due to repairs and maintenance eventually led to increases in WESM prices.

Meralco said the higher WESM charges were partly offset by lower prices from its independent power producers, whose rates decreased P0.09 per kWh, and National Power Corp., which registered a decrease of P0.22 per kWh.

Meralco’s IPPs includes First Gen Corp., Quezon Power Philippines Ltd. and DMCI Power Corp.

The WESM, IPPs and Napocor contributed 6.9 percent, 44.1 percent, and 49 percent, respectively, to Meralco’s power supply for the month of September.

Meralco said the transmission charge also went up by a slight P0.04 per kWh, mainly because of higher ancillary generation costs, which are affected by WESM charges.