Rates lowest in more than five years or since January 2010

MANILA, PHILIPPINES, 7

TH

October 2015 - Meralco announced that after five consecutive months of reduction, the

overall rates for its residential customers this October will go down by PhP0.13 per kilowatthour (kWh)

. This brings the total reduction to PhP2.26 per kWh over the past six months. This month's reduction also marks the eight time this year that rates have gone down.

For a typical household consuming 200 kWh, the overall electricity bill will go down by PhP26 compared to last month. At PhP8.42 per kWh, this month's overall rate is lower by PhP2.05 compared to October 2014's PhP10.47 per kWh. Meralco said this is the lowest in more than five years or since January 2010.


Lower generation cost from WESM

The reduction in the overall rates was primarily due to the generation charge, which decreased by PhP0.14 per kWh from last month. At PhP3.99 per kWh, this October's generation charge is also the lowest since January 2010.
Charges from the Wholesale Electricity Spot Market (WESM) registered a reduction of PhP3.71 per kWh. This was due to higher plant availability in September as compared to August.
The average rate of the plants under the Independent Power Producers (IPPs), meanwhile, increased by PhP0.08 per kWh caused primarily by the higher cost of fuel.
Plants under the Power Supply Agreements (PSAs) also registered an increase of PhP0.18 per kWh due to the lower dispatch of some power plants, particularly Pagbilao, Ilijan, and TMO.
Contributing also to the increase in IPP and PSA rates was their unusually low rates in September as they included adjustments from prior months (e.g., cover cost deductions from Malampaya following the supply restrictions from previous months).
The share of PSAs, IPPs, and WESM to Meralco's total power requirements stood at 47, 47, and 6 percent, respectively.
Adjustments in other bill components

In addition to the generation charge, other charges (system loss and subsidies) decreased by PhP0.01 per kWh following the decrease in generation charge. Transmission charge, on the other hand, registered an increase of PhP0.01 per kWh due to the higher ancillary service charges. There was also a slight increase of PhP0.01 per kWh in taxes.
Meralco's distribution, supply, and metering charges remain unchanged after it registered a reduction last July.
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).

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