Big­ger WESM charge pushes up Mer­alco bills

Business World - - Front Page - VVS

MANILA ELEC­TRIC CO. (Mer­alco) said on Thurs­day that elec­tric­ity rates in Novem­ber will in­crease by P0.4717 per kilo­watthour (/kWh) as the power gen­er­a­tion charge rose dur­ing the month.

For the av­er­age house­hold con­sum­ing 200 kWh, the in­crease will bring power cost to P9.5579/ kWh from P9.0862/kWh in the pre­vi­ous month. This trans­lates to a P94 in­crease in the monthly elec­tric­ity bill for Novem­ber.

Con­sumers us­ing 300 kWh, 400 kWh and 500 kWh can ex­pect their monthly bills to in­crease by P141.51, P188.68 and P235.85, re­spec­tively.

Mer­alco said the higher charges at the whole­sale elec­tric­ity spot mar­ket (WESM) led to the over­all in­crease in the gen­er­a­tion charge.

“De­spite the ad­just­ment, elec­tric­ity rates this month are still al­most P1/kWh lower than in April 2019,” it said.

From P4.5406/kWh in Oc­to­ber, the gen­er­a­tion charge for Novem­ber in­creased to P5.0317/ kWh, an up­ward ad­just­ment of P0.4911/kWh.

Charges from the WESM rose by P3.8016/kWh be­cause of the tighter sup­ply con­di­tions in the Lu­zon grid. This was af­ter the Na­tional Grid Cor­po­ra­tion of the Philip­pines (NGCP) placed the grid on yel­low alert on Oct. 14 and 15 due to forced out­ages of sev­eral power plants and the main­te­nance shut­down of the Malam­paya nat­u­ral gas fa­cil­ity from Oct. 12-15.

WESM charges also rose as the net set­tle­ment sur­plus (NSS) re­fund, which was or­dered by the En­ergy Reg­u­la­tory Com­mis­sion

(ERC) on Aug. 1, 2019, was sig­nif­i­cantly lower for Novem­ber at around P21 mil­lion. “ERC-or­dered NSS re­fund last Septem­ber and Oc­to­ber to­taled ap­prox­i­mately P1 bil­lion, which greatly con­trib­uted to the lower gen­er­a­tion charges for the two prior months. The NSS re­fund is ex­pected to end this month,” Mer­alco said.

Dur­ing the pe­riod, the share of WESM to Mer­alco’s sup­ply re­quire­ments was at 16%.

Mer­alco said the cost of power from the in­de­pen­dent power pro­duc­ers (IPPs) and power sup­ply agree­ments (PSAs) went down by P0.0476/kWh and P0.2643/kWh, re­spec­tively.

The de­crease was due to higher av­er­age plant dis­patch, lower coal prices, and the strength­en­ing of the peso against the US dol­lar, it said.

“Around 97% of IPPs costs and 60% of PSA costs are dol­lar­de­nom­i­nated. IPPs and PSAs pro­vided 39% and 45% of Mer­alco’s sup­ply needs, re­spec­tively,” it added.

Mean­while, trans­mis­sion charge for res­i­den­tial cus­tomers de­creased by P0.0767/kWh as a re­sult of lower NGCP an­cil­lary ser­vice charges. Taxes and other charges posted an in­crease of P0.0573/kWh.

“Mer­alco’s dis­tri­bu­tion, sup­ply and me­ter­ing charges, mean­while, have re­mained un­changed for 52 months, af­ter these reg­is­tered re­duc­tions in July 2015,” the util­ity said in its press re­lease, re­it­er­at­ing that it does not earn from the pass-through charges, such as the gen­er­a­tion and trans­mis­sion charges. —

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.