Electricity rates slightly go up this April

Increase in Generation Charge brought about by rise in WESM prices
MANILA, PHILIPPINES, 10TH April 2017 – Meralco announced that the increase for April 2017 for a typical residential household will amount to PhP0.23 per kWh, thereby bringing the overall rate to PhP9.89 per kWh from last month’s rate of PhP9.67 per kWh. This amounts to a PhP45 increase in the total bill of a typical residential household consuming 200kWh.

The rate increase this month is mostly due to the upward movement in the generation charge. Contributing to the increase is the increase in the cost of power sourced from the Independent Power Producers (IPPs) and Wholesale Electricity Spot Market (WESM).

Higher IPPs and WESM prices contributed to the increase in generation charge

Overall generation charge increased from PhP4.90 per kWh in March to PhP5.10 per kWh for this month. Contributing to the increase are the P0.39 per kWh increase in the cost of power sourced from IPPs and the P0.78 per kWh increase in WESM prices.  Higher IPP costs were primarily due to the low dispatch of Quezon Power, while the increase in WESM prices can be attributed to plant outages and higher demand. Power demand in Luzon this month rose by around 790 MW from February. The share of IPPs and WESM purchases to Meralco’s total requirements are 34% and 14%, respectively.

On the other hand, there was a decrease of PhP0.36 per kWh in power supplied through Meralco’s Power Supply Agreements (PSAs) and Interim Power Supply Agreements (IPSAs). The share of PSAs and IPSAs this month stood at 52%.

Adjustments in other bill components

There was a slight decrease of PhP0.0629 per kWh in the transmission charge of residential customers due to a decrease in Ancillary Service Charges. Taxes and other charges went up by a combined amount of around PhP0.094 per kWh.

Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 21 months, after these registered reductions in July 2015. 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, while payment for the transmission charge goes to the National Grid Corporation of the Philippines (NGCP).

Meralco provides energy efficiency tips for customers

In light of the higher rates this month, and with the arrival of summer, Meralco once again advised its customers to continue practicing energy efficiency initiatives to help manage their electricity consumption. These include everyday household tips that may help save energy.  Simple tips such as unplugging appliances when not in use to avoid “phantom load.” Using a power board or strip which can supply power to several appliances at once and allows a user to conveniently turn them off simultaneously using just one switch.  Maximizing natural light during daytime and keeping appliances well maintained to ensure optimal performance. For more helpful tips, customers may visit its website at www.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco.