Manila Electric : Electricity rate increases this November

MANILA, PHILIPPINES, 9 November 2017 - Meralco announced an increase for November 2017, amounting to PhP0.3436 per kWh for a typical residential household, thereby bringing the overall rate from last month's PhP9.2836 per kWh to PhP9.6272 per kWh. The rate increase this month amounts to a PhP68.72 increase in the total bill of a typical residential household consuming 200kWh.

Higher generation charge leads to overall rate increase

Overall generation charge increased this November by PhP0.1925 per kWh, from PhP4.7155 per kWh in October to PhP4.9080 per kWh this month primarily due to higher WESM charges and the depreciation of the peso versus the dollar.

Charges from the Wholesale Electricity Spot Market (WESM) increased by PhP0.4810 per kWh. Despite the reduction in Luzon power demand this month, spot market prices increased due to tighter supply conditions. The share of WESM purchases to Meralco's total requirements this month was 15%.

Cost of power from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) registered increases due to the weakening of the Peso against the US dollar. Peso depreciation had a much larger impact on IPP costs because around 97% of IPP costs are dollar-denominated. On the other hand, the impact of Peso depreciation on PSA costs was moderated by a lower share of costs in US dollars at around 58%. The PhP0.2868 per kWh increase in the cost of IPPs may also be attributed to lower average plant dispatch due to the scheduled outage of San Lorenzo Module 50 for the entire supply month. Despite higher fuel prices, the increase in cost of PSAs was tempered to PhP0.0076 per kWh due to improvement in average plant dispatch. The shares of IPPs and PSAs to Meralco's total requirements stood at 41% and 44%, respectively.

Other charges add to further increase

Transmission charge of residential customers increased by PhP0.0860 per kWh due to higher NGCP ancillary service charges. Consequently, taxes and other charges also went up by PhP0.0651 per kWh this month.

Meralco's distribution, supply, and metering charges, meanwhile, have remained unchanged for 28 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. Taxes and other public policy charges like the FIT-All are collected by government.

Meralco provides energy efficiency tips for customers

As the electricity rate increases 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.