Meralco customers to see generation charge reduction in FebruaryDate Published: February 12, 2014
Customers of the Manila Electric Company (Meralco) will see a PhP4.69 per kilowatthour (kWh) reduction in the generation charge component of their bills this February, from the actual PhP 10.23 per kWh generation charge in January 2014. This follows the aberrant spike in the generation charge, attributed to the confluence of maintenance shutdown of the Malampaya facilities, as well as the scheduled and extended shutdowns and forced outages of major baseload power plants. Generation charge this month stands at only PhP 5.54 per kWh. The decrease in generation charge was driven by the significant PhP 30.67 per kWh reduction in the cost of power sourced from Wholesale Electricity Spot Market (WESM).
It will be recalled, however, that the generation charge for the billing month of January was temporarily capped at PhP 5.67 per kWh (instead of the actual PhP 10.23 per kWh) to reflect the same generation cost set by the temporary restraining order (TRO) issued by the Supreme Court for the billing month of December 2013.
Meralco will pass through this lower generation charge in its February billing. Customers will thus see a decrease of 13 centavos per kWh, from the PhP5.67 per kWh generation charge in their January 2014 billing.
From PhP 36.08 per kWh during the December supply month, WESM charges went down to PhP 5.41 per kWh during the January supply month. This reduction in the generation charge, particularly in the cost of power from WESM, was expected as power supply normalized during the January supply month, with most of the baseload power plants that were previously out of service returning to normal operations and with gas-fired plants no longer using the more costly liquid fuel, such as condensate and bio-diesel. Said shutdown of Malampaya gas facility and the scheduled, unscheduled or forced, and extended shutdown of major power plants during the November and December 2013 supply months caused an aberration in the generation charge levels for the December 2013 and January 2014 bills of customers, which reached record highs of PhP 9.107 and PhP 10.23 per kWh, respectively. Absent the said aberration in the market, prices returned to their normal level.
Average cost of power sourced from plants selling to Meralco under the Power Supply Agreements (PSAs), decreased by 28 centavos per kWh from PhP 5.09 per kWh to PhP 4.81 per kWh. Meralco’s PSAs remained the lowest cost of supply among the power suppliers.
The Independent Power Producers (IPPs), on the other hand, registered a 48-centavo per kWh reduction. From the previous month’s level of PhP 6.47 per kWh, IPP rates went down to PhP 5.99 per kWh this month. For the duration of the Malampaya shutdown, two of Meralco’s IPPs, namely Sta. Rita and Ilijan, both used more expensive liquid fuel in lieu of natural gas. Both plants returned to using natural gas in the January supply month
In terms of share to Meralco’s total power requirements for the supply month of January, the PSAs, IPPs and WESM accounted for 52, 46, and 2 percent, respectively.
Meralco reiterated that it does not earn from the generation charge, which comprises majority of the electricity bill. Payment for it goes to the power suppliers such as the IPPs, plants selling to Meralco under the PSAs and the WESM. Meralco’s distribution, supply, and metering charges account for only about 18 percent on the average of the total electricity bill.
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Renowned Leader in Compliance Profession Visits MVP Group of CompaniesDate Published: February 07, 2014
Mr. Keith Darcy, former Executive Director of the Ethics & Compliance Officer Association (ECOA), and currently Deloitte's Senior Advisor for Governance, Regulatory and Risk Strategies,
paid a visit to the MVP Group of Companies on February 4, 2014. Mr. Darcy thanked the leaders of the MVP Group of Companies for its support and continuing partnership with the Ethics and
Compliance Officer Association (ECOA) and the ECOA Foundation. Two of the MVP Companies are sponsoring partner members and eleven of its senior officers are sponsoring partner associates
Mr. Darcy was the speaker at the Institute of Corporate Directors' DISTINGUISHED CORPORATE GOVERNANCE SPEAKERS SEMINAR SERIES at the Mandarin Oriental Hotel in Makati City on February 5,
2014, which was attended by Meralco Vice President and Corporate Governance Deputy Head, Mr. Gerardo F. dela Paz and Vice President Mr. Manuel Lorenzo L. Tuason.
Mr. Darcy has prodigious experience in ethics and compliance, corporate governance and organizational leadership for 40 years. During his tenure of ten years in ECOA, Mr. Darcy was regarded
as a leader in the compliance profession, working closely with ethics and compliance officers to understand and address the evolving global marketplace. He previously served on the boards of
E-trade Bank, where he chaired the nominating and governance committee and was a member of the audit committee, and New York National Bank (now a division of Hudson Valley Bank), where he was
a member of the compliance committee.
New Directors’ Orientation heldDate Published: January 20, 2014
The newly elected members of the Board of Directors, Messrs. James L. Go and Lance Y. Gokongwei, participated in an Orientation Course on January 13, 2014, on Meralco's Business and Operations, Regulatory Process and Related Issues, Corporate Governance and Organizational Structure as part of the Company's mandate to constantly update itself on evolving structures, legislative framework and regulations of the electric industry.
The orientation was conducted by Meralco President and CEO, Mr. Oscar S. Reyes, and the heads of Regulatory Management Office, Utility Economics, Performance Based Regulation, Corporate Governance and Organization and Transformation Management Services, namely: Ms. Ivanna G. dela Peña, Mr. Lawrence S. Fernandez, Mr. Roderick Dennison N. Nacu, Atty. William S. Pamintuan and Ms. Angelita S. Atanacio.
This orientation forms part of the Company’s governance process which, likewise, enables the members to act pro-actively on the issues of primary concern to the Company.
Partners in pioneer energy efficiencyDate Published: January 09, 2014
End-to-end energy solutionsDate Published: January 09, 2014
MVP Group Directors and Senior Management attend Corporate Governance Enhancement SessionsDate Published: December 20, 2013
Directors of the MVP Group of Companies attended a Corporate Governance Enhancement Session on December 2, 2013 at the Makati Shangri-La. Mr. Winthrop M. Swenson, managing partner of Compliance Systems and Legal Group (CSLG), a law firm that specializes in global approaches to corporate ethics and compliance, was the resource person for the enhancement session.
Mr. Swenson facilitated an interactive exchange of thoughts on the subject of Board Responsibility in light of ethics and governance failures in the past. The scenarios discussed are for useful application by the Directors as they steer the companies towards the strategic objectives of the MVP Group.
The Corporate Governance Enhancement Session for MVP Group Senior Management was held on November 26, 2013 at the Meralco Theater. The session speaker was Ms. Gretchen Winter, the Executive Director of Center for Professional Responsibility in Business and Society, a Center that advocates the value of conducting business professionally to serve and protect public interest. Ms. Winter imparted to the Senior Managers the practical application of core values and company policies in rendering management decisions when facing ethical dilemmas.
Directors and Senior Managers who participated in the executive talk represented Metro Pacific Investments Corp. (MPIC), PLDT, PLDT Global, ePLDT, SMART, SPI GLOBAL, DIGITEL, Mediaquest, MERALCO and MERALCO Subsidiaries.
Through initiatives such as these annual CG enhancement sessions, the MVP Group manifests its commitment to corporate responsibility in its business decisions and practices, consistent with the Group's core principles and values.