By Myrna Velasco
Electricity bills for customers of Manila Electric Company (Meralco) will be on downtrend this December billing month at the rate of P0.3785 per kilowatt hour.
That will then cut the overall billed rate of the utility firm to P9.2487 per kWh from last month’s P9.6272 per kWh.
For the average residential end-user within the consumption base of 200 kWh, that will redound to savings of P76, according to Meralco.
The distribution firm explained that “the lower December rate was mainly due to a P0.3035 per kWh reduction in the generation charge.”
Overall, the generation charge component in the rates had declined to P4.6045 per kWh from P4.9080 per kWh, and such had been traced generally “to the peso’s appreciation and lower Wholesale Electricity Spot Market (WESM) charges.”
The other cost factors triggering rate reduction had been the P0.0186 per kWh cut in the ancillary services charge of the National Grid Corporation of the Philippines (NGCP); which had partly pulled down taxes and other charges by P0.0564 per kWh.
Meralco noted that “despite a slight increase in the demand for power in Luzon in November, charges from the WESM decreased by P0.4658 per kWh.”
It expounded that the power supply situation somehow improved in the last supply month, compared to the ‘distressed situation’ that the power system had suffered in October, with incidents of ‘yellow alerts’ at that time.
On its supply procurement, Meralco indicated that it had 12-percent exposure in the spot market in the last supply month.
For sourcing on its contracted independent power producers (IPPs) and power supply agreements, their respective share had been at 44-percent each, manifestly accounting for the bulk of its portfolio.
For its PSAs, power supply cost purchasing had been down by P0.3244 per kWh; while for IPPs, they had been lower on average by P0.2191 per kWh, the utility firm has noted.