Meralco sees lower power rates

The Manila Electric Co. (Meralco) may reflect a slight reduction in power rates this month, with lower generation charges from supply contracts.

Meralco spokesperson Joe Zaldarriaga told the Inquirer via text message that there were upward adjustments in charges from the Wholesale Electricity Spot Market (WESM) in the supply month.

“There is, however, a strong possibility that reductions in the rates of the independent power producers, or IPPs, and rates from our power supply agreements, or PSAs, may offset the WESM upward adjustment. We expect to announce the final rates on Monday,” Zaldarriaga said.

Meralco is still finalizing the computations.

“We can confirm that charges from the WESM did go up. However, there is a strong possibility that reductions in IPP and PSA rates can more than offset the WESM increase,” Meralco assistant vice president and head of utility economics Lawrence Fernandez said.

He said the improved fuel use and dispatch of “certain plants” made way for lower generation charges from IPPs and PSA partners.

“Preliminary estimates point to a potential reduction of 15 to 20 centavos per kilowatt hour. We will know for certain when we announce the final generation charge on Monday,” Fernandez said.

There were concerns earlier this week that power rates for June may increase due to short-term increases in the WESM.