Energy shock hits with higher rates
Filipino consumers will have to bear the brunt of the current oil crisis with higher electricity rates even as they grapple with rising food prices.
Dominant power distributor Manila Electric Company (Meralco) on Friday announced a P0.3982 per kilowatt hour (kWh) adjustment in its June rate, citing increases in charges from Independent Power Producers (IPP) and Power Supply Agreements (PSA) by P0.6083 and P0.0859 per kWh, respectively, mainly due to higher fuel costs. For a residential customer consuming 200 kWh, the overall rate will be P10.4612 from P10.0630 per kWh last month, equivalent to an increase of nearly P80 in the total bill.
“Fuel charges from the First Gas power plants went up 8 percent with the increased usage of more expensive liquid fuel amid the ongoing Malampaya gas supply restriction. Coal prices also went up by an average of 23 percent, contributing to the higher IPP and PSA charges,” Meralco said.
Oil prices have been on an upward spiral since later February after major oil producer Russia invaded Ukraine, disrupting energy supply chains worldwide as Western allies sanctioned Moscow over its aggression.
United Nations chief Antonio Guterres called on all parties to immediately find a peaceful solution to end the war in Ukraine, pointing to the dire global consequences of the invasion on energy, food security, and finance. Guterres said the global impact of the conflict is “speeding up, threatening to unleash an unprecedented wave of hunger and destitution, leaving social and economic chaos in its wake.”
According to Meralco, prices in the Wholesale Electricity Spot Market (WESM) remained elevated, with the secondary price cap imposed twice in the last supply month (29 and 30 April). Peak demand in the Luzon grid reached a record 12,113 MW in May following the continued easing of mobility restrictions and consequent increase in economic activity.
This month’s generation charge includes the last three installments covering the deferred generation costs for the March bill and the second of three installments for the April bill. These accounted for around P0.20 per kWh of the generation charge.
PSA, IPP, and WESM accounted for 48 percent, 40 percent, and 12 percent of Meralco’s energy requirement, respectively.
Oil prices have been on an upward spiral since later February after major oil producer Russia invaded Ukraine, disrupting energy supply chains worldwide as Western allies sanctioned Moscow.
Transmission and other charges
Transmission charges for residential customers slightly increased P0.0083 per kWh, while taxes and other charges also registered a net increase of P0.0586 per kWh.
The collection of P0.0025 per kWh representing the Universal Charge -Environmental Charge remains suspended as ordered by the Energy Regulatory Commission.
The implementation of distribution -related refunds continues to temper the overall power rate. For residential customers, the total refund is equivalent to P0.9353 per kWh.
Meralco reiterated that it only earns from distribution, supply, and metering charges which have remained unchanged since the reduction in July 2015.
Meanwhile, pass-through charges from generation and transmission are paid to the power suppliers and the system operator, respectively. In contrast, taxes, universal charges and Feed-in Tariff Allowance are remitted to the government.
Since the rainy season has officially begun, Meralco advises its customers to practice safety measures and prepare for floods or typhoons. Customers are urged to charge mobile phones, flashlights and other essential gadgets or rechargeable appliances. During typhoons, use rubber boots and gloves for added protection. In case of flooding, switch off circuit breakers and ensure electrical wires and devices are dry before touching them. If outlets or appliances are drenched, have a licensed electrician check them before using.
Meralco also empowers its customers to continue practicing energy efficiency. Customers can know how much their gadgets and appliances consume through the Appliance Calculator on the Meralco Mobile app. This will help them stay in control and better manage their monthly consumption.