Meralco’s September rates to go up

Increase due to higher generation charge


Manila Electric Co. (Meralco) rates for the month of September will go up by P0.18 a kiloWatt-hour (kWh) due mainly to higher power-generation and transmission charges. This follows a cumulative reduction of P0.65 a kWh during the past two months.

The average residential customer with 200-kWh monthly consumption will experience an increase of P36 in electricity bills for the month of September.

Despite the overall rate increase, Meralco said this month’s generation charge at P5.17 a kWh was still P0.62 lower than the January 2013 level of P5.79 a kWh. The generation charge in January reflected costs in December 2012 prior to the effectivity of the Power Supply Agreements (PSAs), Meralco said.

On a year-on-year basis, this month’s generation charge is lower by 23 centavos a kWh than that in September 2012 and reflected the contribution of the new PSAs, which remained to be the lowest-cost source of electricity.

The country’s top power distributor reported yesterday that the higher rate this month was mainly due to an increase of P0.13 a kWh in the generation charge. Meralco said this resulted from an P8.70-a-kWh upward adjustment in the cost of electricity sourced from the Wholesale Electricity Spot Market (WESM).

WESM prices went up as a result of increases in the trading amount, coupled with higher previous month’s adjustments.

Rates of both the new PSAs and Independent Power Producers (IPPs) went down by P0.03 a kWh. This was due mainly to an improvement in capacity factor for some plants and the reduction in coal prices for the supply month of August, which offset the impact of a slight depreciation of the peso against the dollar.

In terms of contribution to Meralco’s total supply requirements for the August supply month, PSAs, IPPs, WESM and other sources had shares of 56.1, 41.4, 2.4 and 0.1 percent, respectively.

As for other bill components, transmission and other charges increased by P0.08 and P0.01 a kWh, respectively. The increase in transmission charge was mainly due to higher cost of ancillary service charges.

Taxes decreased by P0.04 centavos a kWh.

Meralco said it did not earn from these pass-through charges, the largest of which is the generation charge. Payment for the generation charge goes to power suppliers such as the IPPs, plants selling to Meralco under the PSAs and the WESM. The rest of the pass-through costs include transmission, taxes, universal charges and other fees.

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  • eliseobeltran

    Meralco eto ang tahimik na magnanakaw

  • jr_06498

    Hayup talaga itong Meralco, mayroon na naman gimmick.
    Dito sa Amin sa Marikina, nakatanggap kami ng Sulat tungkol sa average consumption, at sang ayon sa sulat, kinakailangang mag bigay kami ng additional amount para sa karagdagan deposito sa pag papaya ng linya ng koryente na halos tatlong dekada na ang nakaraan. At ang karagdagan deposito ay nag kakahalaga ng dalawang libong piso. Ano na namang kahayupan ng Meralco ang gimmick na Ito?

  • Dancing Bear

    Although the Lopez family do not control MERALCO anymore, I guess they still have considerable stock options. The Lopez family, along with other oligarchs do control the power generation industry and their stranglehold is such that when oil prices increase, power rates go up and when oil prices falls, power rates still increase due to a plant shutdown.


    MERALCO has been taking advantage ever since.

  • big dawg

    how ironic, mas mahirap tayo sa japan, thailand, china, taiwan etc… pero presyo ng kuryente natin pinakamayaman.


    noong may ppa mataas ang singil ng kuryente dahil binabayaran ang full capacity ng mga generation company kahit hindi nagagamit

    ngayon lahat ng kanilang kuryente ay nagagamit na natin. bakit hindi bumaba ang binabayaran natinl? binabayaran na ito ng mga gumagamit ng kanila supply.

    ngayon napapabalitang kukulangin na naman daw ang supply ng kuryente. asahan na ang malawakan brown out .at lalong pagtaas ng kanila sinisingil.

    • eight_log

      Kaya the more people conserve electricity the more expensive it becomes … if one is to look at the formula Capacity/actual generation x Rate/kw. It follows, likewise that the more standby capacity they have … the more expensive electricity is!!!!!

  • eagleclaw101

    To Manila
    Electric Monopoly Co. we don’t need your “Mumbo-Jumbo” computation to rationalize
    your price increases. Your real intention is to bleed and suck dry your
    consumers. The consuming public is well aware of Meralco’s “Itemized Charging System”
    as highly irregular because we find list of non-related items on consumer’s
    electric bills like as follows: the monthly salaries of personal drivers,
    house-help, cooks, bodyguards, lavanderas and Yayas.

  • Tommy

    ‘On a year-on-year basis, this month’s generation charge is lower by
    23 centavos a kWh than that in September 2012 and reflected the
    contribution of the new PSAs, which remained to be the lowest-cost
    source of electricity.’

    So I guess there’s SOME progress being made.

    Still, this needs to be addressed ASAP. Expanding the scope of the FIT would be a good start. (Though ideally it would be in pesos, to avoid currency fluctuations)

  • D L

    Electricity rate scam is much bigger than pork barrel scam.

    • Sun Tzu

      tama ka rito D L

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