MANILA: The Manila Electric Company (Meralco) announced Monday that the power rate in its franchise areas increased by PHP0.0327 per kilowatt hour in August to PHP11.6339 per kWh from PHP11.6012 per kWh rate in July.
‘For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around PHP7 in their total electricity bill,’ the distribution utility said in a statement.
Higher transmission charges pushed the increase in the Meralco rate this month.
Meralco said transmission rates went up by PHP0.1086 per kWh as the grid operator increased ancillary service charges to help maintain grid reliability. This month, these charges rose by over 50 percent, with costs for contingency and dispatchable reserves doubling.
‘The transmission charge increase more than offset the PHP0.0503 per kWh reduction in the generation charge,’ it added.
Charges from Independent Power Producers (IPPs) declined while rates from the Wholesale Electricity Spot Market (WESM) and Power Supply Agreements (PS
As) were higher this month.
Meralco sourced 40 percent of its requirement from PSAs, 33 percent from IPPs, and 27 percent from WESM.
Meralco also advised its customers of a possible increase in generation costs from First Gas – Sta. Rita and San Lorenzo, which use Malampaya gas.
After the old Gas Sale and Purchase Agreement (GSPA) expired last month, the supply of Malampaya natural gas to San Lorenzo is now covered by a new GSPA between First Gas and the Malampaya Consortium, similar to Sta. Rita, but the pricing formula from the old GSPA is still being used for both plants until the new agreement gets regulatory approval.
‘Once the new GSPAs are approved, this will certainly affect the generation charges of Sta. Rita and San Lorenzo,’ Meralco vice president and head of corporate communications Joe Zaldarriaga said.
Source: Philippines News Agency