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Higher electricity bills seen this month

Meralco buys more power from oil-fired plants


Customers of Manila Electric Co. can expect their electricity bills to go up in January due to the higher cost of power from the wholesale electricity spot market. AFP PHOTO/JAY DIRECTO

Customers of Manila Electric Co. (Meralco), the country’s biggest power distributor, can expect their electricity bills to go up in the first month of 2013 due to the higher cost of power from the wholesale electricity spot market (WESM).

An Inquirer source privy to Meralco data said that although the WESM bill to Meralco dipped slightly during the supply month of December due to “negative adjustments,” the underlying WESM price went up. The increase helped prop up the final generation charge—which reflects the cost of electricity sourced by the utility from power-generation companies.

It was not made clear whether the cost of electricity from other sources like independent power producers (IPPs) and the state-owned National Power Corp. also went up.

Based on data from the WESM, the December 2012 load-weighted average price (LWAP) ended up 64 centavos a kilowatt-hour higher than the LWAP in November 2012.

Although power consumption was relatively stable in December, supply was tight due to the forced outages at the Masinloc power facility and the scheduled outages at the Ilijan and Sta. Rita natural gas plants, where Meralco sources a portion of its electricity requirements.

As a result of the reduced output from coal and natural gas plants, generation from the more expensive oil-fed power facilities increased.

Meralco is set to announce the generation charge for January anytime this week.

The power firm has always stressed that it does not earn from generation charges. Payments for the generation charge, which is a pass-through cost for Meralco, goes to power producers such as Napocor, the independent power producers (IPPs) and the WESM.

The company’s own rates—in the form of distribution, supply and metering charges—account for only 16 percent of the total electricity bill.

Last month, Meralco customers saw a reduction in their electricity bills due to reductions in the generation, transmission and system loss charges.

Generation charges were cut by 31 centavos a kWh while the transmission charge to residential customers fell by 11 centavos a kWh due to the lower ancillary rates of National Grid Corporation of the Philippines, which operates the country’s transmission network. The lower generation and transmission charges resulted in a drop of 4 centavos a kWh in the system loss charge for this month.

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Tags: Consumer Issues , electricity bills , electricity production and distribution , Energy , Manila Electric Co. (Meralco) , Philippines

  • rodben

    Siguro bagsak stock market ng Meralco kya kailangan bawiin sa mga Pinoy that’s Philippiines economy today Stock Market madaling kita madali ring lugi tapos itaas ang presyo ng services para bawi Gobyerno bulag pepe’t bingi.

  • http://pulse.yahoo.com/_DKHID3EEHTG27U5JXRIIUVKXQA Jose Rizal

    Anong ginagawa ni Noynoy dito sa isyu ng napakamahal na kuryente sa SEA region?

  • BawalAngReklamador

    Mag-i-INVEST na lang ako sa stocks ng MERALCO, kesa PUMUTOK ang ulo ko KAREREKLAMO..

  • rodben

    Bawi agad ang Meralco sa discount kuno last month NA-MAGIC  na naman mga mahihirap na Pinoy panahon ni Marcos di maka-porma meralco sa pag-taas dahil mahal dati ng gobyerno mga mahihirap noon, kya pinatalsik si Macoy ng mga ELITE COMMUNIST sa pwesto.

  • http://www.facebook.com/simoun.magaalahas.10 Simoun Magaalahas

    Pinaka maganda ay buhayin natin ang Bataan Nuclear Powerplant, kung 5 pesos per kw/h ang kuryente natin ngayon baka 2-3pesos per kw/h  ang magiging bayarin na lang natin,Ang problema lang ibang mga kababayan natin ay ignorante sa teknolohiya ng Atomica kaya nasusulsulan ng mga Politiko at lalo na mga negosyante na ipasara ang BNPP. Tama lang ang naisip ni Marcos na magtayo tayo ng nuclear power plant dahil magiging suliranin natin balang araw ang presyo ng langis at kuryente at nararamdaman natin ito sa ngayon.

    • http://pulse.yahoo.com/_33C3ZUU57CQVQD5FPDSZKYR4BQ excalibur


  • elpobre

    Itong kuryente parang gasolina at krudo rin itong tumataas bumababa, kay yan din ang dahilan kung bakit takot ang mga investor dito sa ating bansa.

  • KappaPhiPhi

    well, as promised, growth trickling down

  • D L

    it is not enough that the electricity rates in the philippines are the highest in asia and twice as more as in US. how greedy one can be. good news for OFW, as production shifts to other countries peso will get weaker. goverment are morons.

  • http://profile.yahoo.com/UEUUM443YSQYY5EIAGOEZOOP4M rany


  • http://pulse.yahoo.com/_5STEU22AD7YRHQSB6RE56ZDSYA J

    More have to be done on shifting power loads to night time. This way base load power plants will operate more. The more peak power plants operates, of which the power plants owner prefer, the more energy cost consumers pay.
    Give more incentives to big consumers like office buildings so that they can store energy at night when rates are lower to be used during the day.

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