Power

Electricity rates up

Power rates of Manila Electric Co. (Meralco) will go up this month by P0.0872 per kilowatthour (kWh) to P8.4067 per kWh.

This is equivalent to an increase of around P17 in the total bill of residential customers consuming 200 kWh, Meralco said in a statement Thursday.

The higher rates were due primarily to higher generation charges for April of P4.5370 per kWh, up P0.1621 from last month’s P4.3749 per kWh.

Charges at the Wholesale Electricity Spot Market (WESM), the trading floor for electricity increased by P2.5991 per kWh due to tighter supply conditions in the Luzon grid.

According to Meralco, peak demand in Luzon increased by almost 1,000 megawatts (MW) in March as a result of warmer temperature while unavailable capacity from plant outages remained above 3,400 MW.

Meralco procured 11 percent from the WESM during the supply month.

Lower costs from independent power producers (IPPs) and power supply agreements (PSAs) mitigated the increase in WESM charges.

Charges of IPPs and PSAs decreased by P0.2090 and P0.1371 per kWh, respectively, due to improved average plant dispatch and peso appreciation.

Meralco said this month’s rate also still includes the adjustments for pass-through over/under-recoveries for the period January 2017 to December 2019.

ERC earlier directed Meralco to refund over-recoveries in transmission and other charges over a period of approximately three months and to collect an under-recovery in the generation rate for approximately 24 months.

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