News Updates

Electricity rates up by 31 centavos per kWh for AugustDate Published: August 15, 2014



WESM prior period billing adjustments and power plant outages aggravated
by Typhoon 'Glenda' drive generation charge up

Following a cumulative reduction of P0.86 per kilowatthour (kWh) since last May, a typical residential customer with a 200-kWh consumption can expect a 31-centavo per kWh increase in his electric bill for August. This means an increase of around P62 for this month.

An increase in generation charge and higher universal charge, lifeline subsidy and taxes drove overall upward adjustment.

There was no change in Meralco's distribution charge, while Transmission charge showed a slight reduction.


WESM prior period adjustments and power outages increased the cost of power

Generation charge for August 2014 went up by 23 centavos per kWh, from P5.41 per kWh to P5.64 per kWh. Largely contributing to this were the WESM billing adjustments from prior periods which accounted for around 17 centavos per kWh and an increase of 6 centavos per kWh in the average cost of contracted power supply sourced from Power Supply Agreements (PSAs).

There was a shortfall in power supply due to forced and scheduled outages of various plants, aggravated by the impact of Typhoon 'Glenda'. The damages caused by the typhoon to some transmission and generating facilities limited the output of a number of power plants located in Southern Luzon. This led to the lower dispatch of the affected plants. The presence of the secondary WESM price caps helped moderate the increase in WESM charges.

For the July supply month, a number of power plant units pushed through with their scheduled outages, including Pagbilao 1, and Ilijan 1 & 2. Further depleting supply of power were 20 new forced outages of several power plant units of various durations during the month (due to Typhoon 'Glenda' or otherwise) such as Sta. Rita Units 10, 20 & 30, Calaca 1 & 2, GN Power 1 & 2, Sual 1 & 2, Ilijan 1 & 2, Pagbilao 1 & 2, Masinloc 1 & 2, San Lorenzo Units 50 & 60, Therma Mobile 2 & 4, and Quezon Power, in addition to the continuing forced outage of Sta. Rita 40.

In terms of share to Meralco's total power requirements for the July supply month, PSAs, IPPs, and WESM contributed 53%, 40%, and 7%, respectively.


Movements in other charges

Universal charge increased by P0.04 per kWh, as collection for the previously deferred Universal Charge - Missionary Electrification resumes starting August 2014.Taxes and Subsidies, meanwhile, registered increases of P0.02 and P0.03 per kWh, respectively.

Meralco's Distribution Charge remained unchanged, while the Transmission Charge went down by P0.01 per kWh, due to the lower ancillary charges.


Pass through charges

Meralco reiterates that it does not earn from the pass-through charges, such as generation and transmission, among other bill components. Payment for the generation charge goes to the power suppliers such as the plants selling to Meralco through the WESM and under the PSAs and IPPs. Payment for the transmission charge, meanwhile, goes to the National Grid Corporation of the Philippines (NGCP). Of the total bill, only the distribution, supply, and metering charges accrue to Meralco.


Call for safety

With the onset of the rainy season and the onslaught of strong typhoons, Meralco is calling on its customers to be extra careful and be safety-conscious in dealing with electrical poles and wires that may be toppled by strong winds and rain. The public is advised to steer clear and never attempt to touch or remove any wires or other materials from these poles. In cases of flood, ensure that the main electrical power switch or circuit breaker in your home is off. Be sure to be dry at all times when in contact with any electrical facility to avoid any untoward incident.



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Meralco assists in restoring power in AlbayDate Published: August 15, 2014




Meralco Powering MindsDate Published: July 18, 2014




Power rates up this JulyDate Published: July 11, 2014


Generation charge up due to simultaneous power plant outages

Lower Meralco distribution charge mitigates impact

Electricity rates will go up by around 3 centavos per kilowatthour (kWh) in July for a typical household consuming 200 kWh. This is equivalent to around P6 in the bill for July. This adjustment comes after two straight months that power rates have gone down, for a combined reduction of 89 centavos per kWh (5 centavos in May and 84 centavos in June).

Reasons for the upward adjustment are as follows: (i) higher generation charge, and (ii) higher transmission charge.

A reduction in Meralco's distribution charge, meanwhile, mitigated the increase in the aforementioned charges.

June supply affected by power plant outages

Generation charge for July went up by 10 centavos per kilowatthour (kWh) from P5.31 in June to P5.41. This was primarily due to the P0.26 and P0.10 per kWh increase in the average rate of suppliers with Power Supply Agreements (PSAs) with Meralco, and the rate of Independent Power Producers (IPPs), respectively. These were, however, partly offset by the P4.24 per kWh reduction in the average price of the Wholesale Electricity Spot Market (WESM), inclusive of line rentals and other adjustments.

Contributing to the increase in generation charge were the lower dispatch of a number of power plants due to their scheduled and unscheduled outages during the June supply month. These include: for scheduled outages – Pagbilao 1, San Lorenzo Units 50 and 60; for forced outages – Sta. Rita Unit 40, Calaca 1 and 2, Masinloc 1 and 2, Malaya 2, Ilijan 2, QPPL, San Lorenzo Units 50 and 60, GNPower-2 and Sual-1. The resulting thin reserves brought about by these outages likewise led to frequent declarations of Yellow and Red Alerts for the supply month compared to the previous months. The grid, for instance, was placed on Red Alert for four hours in June due to various generation and transmission-related troubles. Yellow alert, meanwhile, was experienced for 27 hours in June compared to only 25 in May, 8 in April and 6 in March. Yellow alert is reached when the total reserve is less than the capacity of the largest plant on line. For the Luzon grid, this is usually equivalent to 647 MW, or one unit of the Sual Power Plant.

A favorable peso-dollar rate coupled with cheaper coal prices tempered the increase in generation charge

In terms of share to Meralco's total power requirements for the June supply month, PSAs, IPPs, and WESM accounted for 53, 41, and 6 percent, respectively.

Adjustment in other bill components

Contributing to the overall upward adjustment in the bills to households is the P0.08 per kWh increase in transmission charge. According to the National Grid Corporation of the Philippines (NGCP), this was mainly due to higher ancillary charges, which accounted for around 40% of the total transmission cost for the July billing.

There was also a cumulative increase of P0.002 per kWh in subsidies and the system loss charge. Taxes, meanwhile, decreased by P0.003 per kWh.

Decrease in Distribution Charge

Mitigating the increases in the generation and transmission charges for a residential customer consuming 200 kWh is a P0.15 per kWh reduction in the distribution, supply, and metering charges of Meralco. The lower Meralco charges will remain for the duration of Regulatory Year 2015 (RY2015), which is from July 2014 to June 2015.

Under the Performance Based Regulation (PBR), the annual revenue requirement, resulting indicative prices, and performance incentives have been approved before the start of the regulatory period from July 2011 to June 2015. For its part, Meralco has been able to improve its service to the customers by surpassing the standards set by the regulator. Because of this, customers now experience lesser interruptions, lower system losses and faster customer response time.

Completely pass through

Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers such as the plants selling to Meralco through the WESM and under the PSAs, as well as the IPPs. Payment for the transmission charge, meanwhile, goes to the National Grid Corporation of the Philippines (NGCP). Of the total bill, only the distribution, supply, and metering charges accrue to Meralco.

Call for Energy Efficiency

Meralco is reminding its customers to continuously practice energy efficiency. Meralco said that appliances should be in tip-top condition so as to maximize its reliability and efficiency. Turning off appliances and lighting not in use is also another way of managing consumption. For other energy efficiency tips and bright ideas, Meralco is also encouraging its customers to visit its website (www.meralco.com.ph), Facebook page (www.facebook.com/meralco) and Twitter account (@meralco).

Meralco added that given the number of scheduled outages of several large power plants for the rest of the year, it is of great importance to be vigilant in terms of supply adequacy.

Tables below show outages for the remaining months of year 2014

Schedule Outages

Plant

From

To

Duration
(Days)

Capacity on
Outage (MW)

Pagbilao-1

June 10, 2014

July 18, 2014

38

375

Ramon S. Ang

Vice-Chairman
and Director

Present

Present

10/13

Pagbilao 2

July 19, 2014

August 3, 2014

29

375

Sual 2

August 3, 2014

September 1, 2014

29

647

Sta. Rita Mod 20

September 6, 2014

September 10, 2014

4

250

Sual 1

September 13, 2014

October 12, 2014

29

647

San Lorenzo Mod 50

October 25, 2014

October 29, 2014

4

250

Sta. Rita Mod 30

November 1, 2014

November 5, 2014

4

250

San Lorenzo Mod 60

November 8, 2014

November 12, 2014

4

250



Forced Outages

Plant

From

To

Capacity on
Outage (MW)

Sta Rita Mod 40

February 28, 2014

To be confirmed

250

For other tips, customers may visit the Meralco website at www.meralco.com.ph.


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One Meralco Foundation brings electricity to remote schools in RizalDate Published: July 11, 2014




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