Meralco prices slightly up in July
Manila Electric Co. (Meralco) on Friday announced a slight upward adjustment to its electricity rates in July due to the continued increase in the cost of electricity from the wholesale spot electricity market (WESM ).
This is the fourth month in a row that Meralco has increased rates.
In a notice, the electricity distributor said it was increasing its domestic tariff by 0.2353 P per kilowatt hour (/ kWh), bringing the overall tariff for the month to 8.9071 / kWh from 8.6718 / kWh in June.
The upward adjustment resulted in an increase of approximately 47 P in the total bill of a residential customer consuming 200 kWh.
The increase in electricity tariffs was “mainly the result of still high charges in the spot wholesale electricity market (WESM)”.
Nonetheless, Meralco said the July rate increase was tempered by the continued implementation of distribution rate adjustment reimbursement, which began in March.
The Energy Regulatory Commission tentatively approved the utility’s proposal to repay around 13.9 billion pesos over a 24-month period or until the amount is fully repaid.
The amount represents the difference between the actual weighted average tariff and the provisional average tariff approved by the ERC for distribution-related costs for the period July 2015 to November 2020.
For residential customers, the rebate rate is P0.2761 / kWh and appears on customer bills as a line called “Dist True-Up”.
Meanwhile, the production charge for July is 4.8707 P / kWh, an increase of 0.2536 P from 4.6171 P / kWh last month.
Meralco said WESM’s charges remained high at 8.7424 / kWh “due to tight supply conditions in the Luzon grid, exacerbated by Malampaya’s natural gas supply restriction.”
As a reminder, the Luzon grid was placed on red alert from May 31 to June 2 and on yellow alert on June 4 amid the unexpected shutdown of power plants, which reduced up to 4,000 megawatts (MW) of power. of the network.
In addition, Luzon’s demand reached 11,640 MW on May 28, the highest on record.
“As a result, WESM prices have been consistently high for long periods of time, nearly doubling the number of times the secondary price cap was imposed during the June supply month,” Meralco said.
The charges of independent power producers (IPP) also increased by 0.1929 / kWh.
“With the reduction in gas supply to Malampaya, the factories concerned have resorted to more expensive liquid fuels to keep operating and avoid longer or longer outages. costs, ”Meralco said.
On the other hand, the cost of electricity from electricity supply contracts (PSA) decreased by 0.0521 P / kWh.
Meralco said that WESM, IPP and PSA provided 7.8%, 39.5% and 52.7% of its energy requirements, respectively, this month.
Transportation charges for residential customers were reduced by 0.1463 / kWh due to a significant decrease in ancillary service charges.
Taxes and other charges registered an increase of 0.1280 P / kWh.
Meanwhile, the perception of the universal burden – environmental burden remains suspended, as reported by the ERC.
Meralco said its distribution, supply and metering costs remained unchanged for 72 months, following these reductions recorded in July 2015.
The company reiterated that it does not derive any income from passed on costs, such as production and transportation costs.
“The payment of generation costs goes to the electricity suppliers, while the payment of transmission costs goes to the National Grid Corp. from the Philippines. Taxes and other public interest charges such as universal fees and FIT-All are remitted to the government, ”he said. –KBK, GMA News