News Updates

Bluer skies are in sight for Ateneo with new eJEEPs powered by Meralco and its subsidiary MservDate Published: October 24, 2014




Robinsons Land Corporation unites with Meralco in supporting DOE's Interruptible Load ProgramDate Published: October 17, 2014




Power rates up this OctoberDate Published: October 14, 2014


Net reduction of P0.48 in past two months

Following the P0.58 per kilowatthour (kWh) reduction in electricity rates in September, rates will slightly go up by around P0.10 per kWh in October. Accounting for the rate adjustments over the past two months, that would translate to a net reduction of P0.48 per kWh.

For a typical household consuming 200 kWh, this month’s adjustment is equivalent to an increase of around P20 in the bill for October. The upward adjustment is attributed principally to the upward movement in the generation charge.

Malampaya restriction and higher FOREX drive generation charge up

Generation charge, which had decreased by P0.44 per kWh in September, went up by P0.159 per kWh from September’s P5.19 per kWh level to P5.35 per kWh. The generation charge, therefore, yielded a net reduction of P0.28 per kWh over the past two months.

This month’s increase was primarily due to the five-day Malampaya restriction (September 8-11 and September 21-23), which forced the Sta. Rita and San Lorenzo power plants to use more expensive liquid fuel in lieu of natural gas. This resulted in higher generation costs from these plants. This Malampaya restriction also reduced dispatch of the Ilijan power plant during the September supply month. The deterioration of the peso against the dollar from P43.590 to P44.875 this month contributed further to the increase in generation charge.

The use of alternative fuel by the natural gas plants accounted for P0.13 per kWh of the increase in the generation charge, while the higher foreign exchange rate added another P0.08 per kWh. If not for these upward adjustments, the generation charge would have gone down by P0.05 per kWh.

Independent Power Producers (IPPs) (where Sta. Rita, San Lorenzo, and QPPL fall) registered a P0.44 per kWh average increase. Meanwhile, plants under the Power Supply Agreements (PSAs), as a whole, went down by P0.01 per kWh. The Wholesale Electricity Spot Market (WESM) likewise registered a reduction of P7.45 per kWh. The presence of the secondary WESM price cap helped moderate WESM charges and protected customers in spite of the successive restrictions of Malampaya (that limited the output of Ilijan) and the outage of some power plants (both scheduled and forced).

In terms of share to Meralco’s total power requirements for the September supply month, PSAs, IPPs, and WESM accounted for 53, 46, and 1 percent, respectively.

Adjustments in other bill components

Contributing also to the overall upward adjustment in the bills to households is the P0.007 per kWh increase in taxes. Transmission charge, meanwhile, registered a P0.054 decrease per kWh. There was also a cumulative decrease of P0.008 per kWh in subsidies and the system loss charge.

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.

Meralco’s tree trimming service

Meralco also said that since it is still the typhoon season, customers may report tree branches that are near or actually touching power lines as these may trigger power outages or cause unnecessary accidents. Upon notifying Meralco, trained tree trimmers will be sent to do the job. To request for Meralco’s tree trimming service, customers may contact the Meralco Call Center at 16211 or post their request over Meralco’s Twitter account (@meralco) and Facebook page (www.facebook.com/meralco).

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


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Power rates down this SeptemberDate Published: September 10, 2014


Generation charge registers lowest level for the year

Electricity rates will go down by around 58 centavos per kilowatthour (kWh) in September for a typical household consuming 200 kWh. This is equivalent to savings of around P116 in the bill for September. Reasons for the downward adjustment are as follows: (i) lower generation charge (ii) lower transmission charge, and (iii) decrease in other charges.

Improved availability of power plants drive generation charge down

Generation charge for September went down to P5.19 per kWh, its lowest level in 2014 to-date and a 44-centavo per kWh reduction from August’s P5.63. The reduction was primarily driven by the improved availability of generation plants, as less forced outages were registered by power plants during the August supply month. In contrast to July, when the Luzon Grid experienced instances of generation deficiency, no Yellow or Red Alerts were declared in August.

The improved availability of power plants led to higher utilization levels, with corresponding P0.27 and P0.06 per kWh decreases in the average rates of suppliers with Power Supply Agreements (PSAs) with Meralco and of Independent Power Producers (IPPs), respectively.

The improved reliability of power plants also led to lower prices in the Wholesale Electricity Spot Market (WESM). While the Secondary Price Cap was triggered in 56 trading intervals in July, the Cap was triggered for only 18 intervals in August to mitigate price spikes in the WESM. Charges from the WESM, excluding adjustments from prior periods and line rentals, went down by P5.34 per kWh.

In terms of share to Meralco’s total power requirements for the August supply month, PSAs, IPPs, and WESM accounted for 52, 47, and 1 percent, respectively.

Reductions in other bill components

Contributing also to the overall downward adjustment in the bills to households is the P0.04 per kWh decrease in transmission charge. This was mainly due to lower ancillary charges. There was also a cumulative decrease of P0.02 per kWh in subsidies and the system loss charge. Taxes likewise decreased by P0.08 per kWh.

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.

Meralco’s tree trimming service

Meralco also said that since it is still the typhoon season, customers may report tree branches that are near or actually touching power lines as these may trigger power outages or cause unnecessary accidents. Upon notifying Meralco, trained tree trimmers will be sent to do the job. To request for Meralco’s tree trimming service, customers may contact the Meralco Call Center at 16211 or post their request over Meralco’s Twitter account (@meralco) and Facebook page (www.facebook.com/meralco).

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


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Meralco supports 2014 Integrity SummitDate Published: September 09, 2014


Meralco is among the front-runners in this year’s Integrity Summit to be held on September 19, 2014.

Integrity Summit is a campaign spearheaded by Integrity Initiative, Incorporated that aims to promote common ethical standards in society.

Meralco has been a signatory of Integrity Initiative since 2011 and as of September 2014, Meralco has been part of the 12 companies that are validated as “advanced” in terms of implementing ethical standards.

The company has been putting high importance on integrity, through its Corporate Governance Office, to ensure that fairness, accountability and transparency are upheld in order to protect the interest of all stakeholders. Through the Integrity Summit, Meralco would like to serve as a lead in promoting and practicing integrity.

“As a company, we have ensured that we expand our involvement in spreading the culture of integrity among corporates in the country through participating various initiatives and fora to enable other corporates as well to observe best practices,” said Attorney William S. Pamintuan, First Vice President and Head of Legal.

Integrity Summit 2014 is just among the series of events lined up for this year. With the theme “Uniting for Integrity,” the summit aims to increase awareness on the need for stronger ethical practices among all sectors and encourage participants to embrace a culture of integrity.

Representatives from the business groups, government agencies, the youth sector and the church are expected to attend the forum wherein the companies that have mainstreamed integrity practices and are now reaping the benefits of committing to high integrity standards will be recognized.



UPHOLDING INTEGRITY IN BUSINESS. (L-R) Rock Ed Philippines Founder Gang Badoy; Meralco First Vice President Atty. William Pamintuan, Integrity Initiative and Makati Business Club Chairman Ramon del Rosario Jr.; and DLSU Culture and Arts Office Coordinator Sheryl Maala.

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