Power rates going up – Meralco

Electricity rates will go up again next month.

The Manila Electric Co. (Meralco) said the impact of the maintenance schedule of the Malampaya deepwater gas-to-power project in offshore Palawan would be more pronounced in the April supply month, which in turn will determine the May electricity bill.

The one- month maintenance shutdown on April 13 is nearing its end.

Malampaya supplies power to three big power plants in Luzon: the Lopez Group’s 1,000-megawatt Sta. Rita and 500-MW San Lorenzo plants

in Batangas, which shifted to condensate, and Kepco Philippines’ 1,200MW Ilijan plant, also in Batangas, which shifted to biodiesel.

“With the longer impact of the Malampaya maintenance schedule (from March 26 to April 13) on the April supply month, and the expected higher temperature in the coming days, electricity consumers may also expect an increase in the generation charge in their May bills,” Meralco said in an advisory.

In April, electricity rates went up by 27 centavos on the back of the one-month maintenance shutdown of the Malampaya gas field, which forced power plants to use the more expensive liquid fuel.

The overall electricity rate in April is P10.68 per kilowatt- hour, higher than the P10.42 per kwh rate in March but lower than April 2014’s P11.49 per kwh.

Energy Secretary Carlos Jericho Petilla said the more critical period is in May, with demand expected to shoot up to as high as 9,100 megawatts.

“Demand will be higher in May,” he said.

Despite the expected rise in temperature, power industry players believe that the Luzon grid may survive summer without the feared blackouts.

“I think there are really good prospects (this summer) that unless what is lost in the grid is really huge, say 600 MW, I think we will be able to cope with the (summer situation),” said Ramon del Rosario, president and chief executive officer of the Phinma Group, which has investments in power through its power generation arm, Trans-Asia Oil and Energy Development Corp.

Meralco advised consumers to keep tabs on energy consumption.

“Customers are highly encouraged to adopt energy efficiency measures. For instance, setting a 1.0-HP window type air conditioning unit to 25 degrees Celsius will result in lower consumption and corresponding savings of around P280 per month,” Meralco said.

Meralco urged consumers to check refrigerator doors for any cracks and leaks.

“For a seven-cubic feet refrigerator, this scenario where doors do not seal properly and cold air escapes can add up an extra P84 per month on the electricity bill,” Meralco said.

As early as last year, Petilla has sounded the alarm on the Luzon grid’s supply shortage this summer because of the Malampaya shutdown and the expected increase in demand.

The shortage was earlier estimated at 700 megawatts but energy efficiency measures, lower- than- expected demand and lower-than-projected temperature have helped temper the situation.

As of yesterday, the Luzon grid had reserves of 2,351 MW, with capacity at 6,956 MW and demand at 9,581 MW, according to the National Grid Corp. of the Philippines, the grid operator.