May generation charge decreases by 6.38 centavos per kWhDate Published: May 8, 2012
Reduction would have been higher absent NPC increase
The Manila Electric Company (Meralco) today said the actual generation charge went down by P0.0638 per kilowatthour (kWh). Absent the NPC increase, the reduction would have been higher.
It will be recalled that the National Power Corporation (NPC) was allowed to increase its rates in Luzon customers by P0.69 per kWh this month following recovery in its generation rate-adjustment mechanism (GRAM) and incremental currency exchange rate adjustment (ICERA). This NPC increase was, however, tempered by downward adjustments in the charges of the Wholesale Electricity Spot Market (WESM) and the independent power producers (IPPs).
It was noted that WESM prices were moderated by the increased output of coal-fired power plants and continued support from power imported from the Visayas grid. Charges from WESM, which contributed 4.3% to Meralco's power requirements, went down by P0.94 per kWh compared to the previous month.
At the same time, rates of IPPs to Meralco went down by P0.21 per kWh. This was mainly due to the improved utilization of Quezon Power, whose dispatch went up from 47% to 71%. IPPs comprised 42.7% of Meralco’s power requirements for the supply month of April.
NPC’s supply to Meralco accounted for 52.8% of Meralco’s power requirements for the supply month of April.
Meralco reiterated that the cost of power sold by the generating companies can fluctuate monthly based on several external factors such as fuel prices and the foreign exchange rate. As part of its sourcing strategy, Meralco buys power from different sources to obtain adequate and reliable power at the most reasonable price.
The generation charge, which accounts for about 56 percent of the total bill, accrues to these different generating companies and the WESM.
