Consumers of power distributor Manila Electric Co. may see lower power rates in June on the combined impact of lower spot market prices, higher plant dispatch and implementation of the P6.9-billion refund.
“This June, we may see a possible decrease in the generation charge as indications point to lower WESM [Wholesale Electricity Spot Market] prices including higher plant dispatch,” Meralco spokesman Joe Zaldarriaga said.
He said aside from lower generation charges, the P6.9-billion refund to consumers would also be implemented in the June billing of consumers.
Meralco received an approval from the Energy Regulatory to refund P6.9 billion, representing over-recoveries for generation and transmission charges in the period January 2014 to December 2016.
Zaldarriaga said while the approved feed-in tariff allowance would have an upward impact on prices, this would be offset by a “higher refund impact.”
ERC earlier allowed National Transmission Corp. to collect an additional P0.0590 per kilowatt-hour in the feed-in tariff allowance of power consumers, bringing the rate to P0.1830 per kWh starting June.
Meralco’s power rates went down P0.29 per kWh in May following the downward movement of the generation charge.
Overall rates for a typical residential household was placed at P9.60 per kWh in May, lower than P9.89 per kWh in April.
Overall generation charge went down P0.2126 per kWh in May to P4.8839 per kWh from P5.0965 per kWh, inclusive of the last installment of the incremental liquid fuel cost due to the Malampaya maintenance shutdown from Jan. 28 to Feb. 16, 2017.
Meralco said the cost of power sourced from IPPs went down P0.87 per kWh, while the cost of power from PSAs declined P0.14 per kWh.
“As a result of the quarterly repricing, natural gas prices increased this month to reflect higher world crude oil prices. Despite the increase in fuel prices, there was a reduction in IPP costs because of higher plant dispatch and the recent peso appreciation,” it said.
Meralco said the strengthening of the peso against the US dollar also contributed to the drop in power cost from PSAs in May.
Meralco sourced 38.5 percent of its power requirements from the IPPs and 40.6 percent from PSAs.
Cost of supply from WESM, however, increased P0.68 per kWh during the May billing, because of plant outages and higher power demand in Luzon. Meralco sourced 20.9 percent of its requirements from WESM.