Electricity rates go down this June

MANILA, PHILIPPINES, 8TH June 2017 – After a PhP0.29 per kWh reduction in May, Meralco announced another decrease for June 2017, amounting  to PhP1.43 per kWh for a typical residential household , thereby bringing down the overall rate from last month’s rate of PhP9.60 per kWh to PhP8.17 per kWh. This month’s overall rate is the second lowest since December 2009. The rate decrease this month amounts to a PhP285 decrease in the total bill of a typical residential household consuming 200kWh.

The June rate reflects the refund of over-recovery on pass-through charges from January 2014 to December 2016 totaling around PhP6.9 billion. Meralco’s petition for refund with prayer for provisional authority on implementation was granted by the Energy Regulatory Commission (ERC) on May 11, 2017 for implementation from June to August 2017. The refund will not be a separate line item in the bill but will be embedded in the different pass-through charges indicated in the bill, which include Generation, Transmission, and System Loss Charges and Lifeline and Senior Citizen Subsidies. For residential customers, the refund translates to a reduction of PhP0.79 per kWh, excluding taxes.

Also contributing to this month’s rate decrease is the downward movement in the generation charge.

Lower generation cost due to improved dispatch of IPPs and PSAs and lower WESM charges

Overall generation charge decreased this June by PhP1.0253 per kWh, from PhP4.8839 per kWh in May to PhP3.8586 per kWh for this month.  Contributing to the decrease are the P0.59 per kWh decrease in the cost of power sourced from IPPs, the P1.25 per kWh decrease in power sourced from WESM, and the P0.04 per kWh decrease in PSA prices.  

There was a reduction in IPP and PSA costs because of higher plant dispatch, continuous Peso appreciation and the completion of the staggered recovery of liquid fuel cost that was incurred during the Malampaya maintenance shutdown from January 28 to February 16, 2017. The share of IPPs and PSA purchases to Meralco’s total requirements are 40.7% and 45.6% respectively.

Additionally, the decrease in cost of power supplied through the Wholesale Electricity Spot Market (WESM) is due to fewer plant outages despite higher power demand in Luzon. The share of WESM this month stood at 13.7%.

Adjustments in other bill components

This month, there was a decrease of PhP0.11 per kWh in the transmission charge of residential customers, while taxes and other charges also went down by a combined amount of around PhP0.35 per kWh.

However, starting this month, the Feed-in-Tariff Allowance (FiT-All) will be PhP0.1830 per kWh, after the ERC recently approved an increase of PhP0.0590 per kWh on the previous rate. FIT-All is a pass-through charge remitted to the National Transmission Corporation (TransCo) as an incentive for renewable energy (RE) developers, such as those operating wind, run-of-river hydropower, solar and biomass facilities.

Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 23 months, after these registered reductions in July 2015. Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the National Grid Corporation of the Philippines (NGCP).

Meralco provides rainy season safety tips for customers

As the rainy season has officially begun, Meralco advised its customers on important safety tips to prepare for floods or typhoons. Simple tips such as charging your cellphones, flashlights, and other important gadgets or rechargeable appliances. Staying updated with the news on TV and radio. Storing food and potable water. During the typhoon, Meralco advises customers to use rubber boots and gloves for added protection. In case of flood, switch off your circuit breaker. After the typhoon, help clean the debris in your area. If outlets or appliances are drenched, have a licensed electrician check these before using.

For more helpful tips, customers may visit Meralco’s website at www.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco.

ADVT