Electricity rate normalizes this September after 3-month refund

MANILA, PHILIPPINES, 7TH September 2017 – Meralco announced an increase for September 2017, amounting to PhP0.8642 per kWh for a typical residential household, thereby bringing the overall rate from last month’s PhP8.3849 per kWh to PhP9.2491 per kWh.  This will be equivalent to an additional PhP173 in the total bill of a household consuming 200kWh.

Rates this September returned to pre-refund levels after completion 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 was not shown as a separate line item in the bill but was reflected as reductions in the different pass-through charges of the bill, which include Generation, Transmission, and System Loss Charges and Lifeline and Senior Citizen Subsidies.

For residential customers, the refund translated to a monthly reduction of around PhP0.88 per kWh, including taxes.  A typical residential household consuming 200kWh enjoyed a total bill reduction of almost PhP530 over the three-month period.

Higher generation charge due to increase in WESM prices and peso depreciation

Overall generation charge increased this September by PhP0.5615 per kWh to PhP4.5378 per kWh, from PhP3.9763 per kWh in August.  The August generation charge incorporated a reduction of PhP0.5355 per kWh, representing the refund approved by the ERC.

Purchases from the Wholesale Electricity Spot Market (WESM) increased by PhP1.7263 per kWh as prices in the spot market increased due to higher power demand in the Luzon grid. The cost of power from Power Supply Agreements (PSAs) also registered a slight increase of PhP0.0263 per kWh, mainly due to the peso depreciation and lower plant dispatch. The shares of WESM and PSAs this month stood at 12% and 42%, respectively.

Meanwhile, despite weakening of the peso, the cost of power sourced from the Independent Power Producers (IPPs) decreased by PhP0.1117 per kWh due to improved dispatch of First Gas-Sta. Rita, after undergoing scheduled maintenance in the preceding month. The share of IPPs this month stood at 46%.

Adjustments in other bill components

Transmission charge of residential customers decreased by P0.0510 per kWh, and taxes and other charges have also gone up by P0.3537 per kWh.

Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 26 months, after registered reduction 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 energy efficiency tips for customers

As electricity rates normalize this month, 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 the aircon at mid-setting or at 25 degrees Celsius for maximum efficiency. 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.