Electricity rate slightly increases this August

MANILA, PHILIPPINES, 8TH August 2017 –Meralco announced an increase for August 2017, amounting to PhP0.1338 per kWh for a typical residential household, thereby bringing the overall rate from last month’s PhP8.2511 per kWh to PhP8.3849 per kWh.  The slight rate increase this month amounts to a PhP27 increase in the total bill of a typical residential household consuming 200kWh.

The August rate reflects the last instalment of the refund of over-recovery on pass-through charges from January 2014 to December 2016 totaling around PhP6.9 billion. Meralco’s petition for refund with prayer for provisional authority was granted by the Energy Regulatory Commission (ERC) on May 11, 2017 for implementation from June to August 2017. The refund is not shown as a separate line item in the bill but is embedded in different pass-through charges indicated in the bill, which include Generation, Transmission, and System Loss Charges and Lifeline and Senior Citizen Subsidies. For residential customers, the refund translates to a reduction of PhP0.79 per kWh, excluding taxes.

Higher generation cost due to higher IPPs and PSAs charges

Overall generation charge increased this August by PhP0.0378 per kWh, from PhP3.9385 per kWh in July to PhP3.9763 per kWh for this month.  

The cost of power from Power Supply Agreements (PSAs) increased by PhP0.2222 per kWh due to lower plant dispatch resulting from forced outages of Masinloc and Pagbilao. The cost of power sourced from the Independent Power Producers (IPPs) also increased, by PhP0.0642 per kWh.  With the quarterly repricing of Malampaya natural gas, natural gas prices went up to reflect higher world crude oil prices. The share of PSAs and IPPs this month stood at 45.6% and 44.0%, respectively.

Charges from the Wholesale Electricity Spot Market (WESM), meanwhile, decreased by PhP0.9768 per kWh, mitigating the increase in PSAs and IPPs rates. Prices in the spot market decreased this month due to lower power demand in the Luzon grid. The share of WESM purchases to Meralco’s total requirements this month was 10.4%.

Adjustments in other bill components

In its Decision dated 27 June 2017 on ERC Case No. 2013-195 RC, the ERC approved the recovery of National Power Corporation’s (NPC) stranded debt for 2011 and 2012 amounting to PhP24.2 billion. The recovery period has been set to nine (9) years at a rate of PhP0.0265 per kWh to be collected nationwide by distribution utilities and the National Grid Corporation of the Philippines (NGCP). The rate shall be reflected as a separate line item in the bill as “Universal Charge-Stranded Debts”.

This month, transmission charge of residential customers slightly increased by P0.0383 per kWh, and taxes and other charges have also gone up by P0.0577 per kWh.

Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 25 months, after the 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 NGCP.

Meralco provides rainy season safety tips for customers

As the rainy season continues, Meralco advised its customers on important safety tips to prepare for floods or typhoons. Simple tips such as charging your cellphones, flashlights, and other important gadgets or rechargeable appliances. Staying updated with the news on TV and radio. Storing food and potable water. During the typhoon, Meralco advises customers to use rubber boots and gloves for added protection. In case of flood, switch off your circuit breaker. After the typhoon, help clean the debris in your area. If outlets or appliances are drenched, have a licensed electrician check these before using. For more helpful tips, customers may visit Meralco’s website at www.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco.