Electricity rates go down this May

Lower Generation Charge brought about by decrease in IPP and PSA prices
08:00 AM May 12, 2017

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May rates PR

MANILA, PHILIPPINES, 9TH May 2017 – Meralco announced that the decrease for May 2017 for a typical residential household will amount to PhP0.29 per kWh, thereby bringing the overall rate to PhP9.60 per kWh from last month’s rate of PhP9.89 per kWh. This amounts to a PhP58 decrease in the total bill of a typical residential household consuming 200kWh.

The rate decrease this month is mostly due to the downward movement in the generation charge. Contributing to the downward movement is the decrease in the cost of power sourced from the Independent Power Producers (IPPs) and the PSAs (Power Supply Agreements).


Lower prices of IPPs and PSAs contributed to the decrease in generation charge

Overall generation charge decreased this May by PhP0.2126 per kWh, from PhP5.0965 per kWh in April to PhP4.8839 per kWh for this month, inclusive of the last installment of the incremental liquid fuel cost due to the Malampaya maintenance shutdown from January 28 to February 16, 2017. Contributing to the decrease are the P0.87 per kWh decrease in the cost of power sourced from IPPs and the P0.14 per kWh decrease in PSA prices.

As a result of the quarterly repricing, natural gas prices increased this month to reflect higher world crude oil prices. Despite the increase in fuel prices, there was a reduction in IPP costs because of higher plant dispatch and the recent Peso appreciation. The strengthening of the Peso against the US Dollar also contributed to the decrease in PSA costs this month.. The share of IPPs and PSA purchases to Meralco’s total requirements are 38.5% and 40.6% respectively.

On the other hand, there was an increase of PhP0.68 per kWh in power supplied through the Wholesale Electricity Spot Market (WESM) due to plant outages and higher power demand in Luzon. The share of WESM this month stood at 20.9%.

Adjustments in other bill components

This month, there was a slight increase of PhP0.02 per kWh in the transmission charge of residential customers, while taxes and other charges went down by a combined amount of around PhP0.10 per kWh.

Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 22 months, after these 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 National Grid Corporation of the Philippines (NGCP).

Meralco provides energy efficiency tips for customers

As the end of summer approaches, Meralco once again advised its customers to continue practicing energy efficiency initiatives to help manage their electricity consumption despite the warmer weather. 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.

TOPICS: Electricity Rates, energy efficiency tips, Meralco
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