Power rates declined for the fourth straight month on lower generation charges, retailer Manila Electric Co. said Tuesday.
Meralco said overall electricity rates for a typical household consuming 200 kilowatt-hours decreased to P9.5674 per kWh in August from P9.9850 per kWh in July.
Meralco said the downward adjustment of P0.4176 per kWh would translate into a drop of around P84 in the typical household’s monthly bill.
“The fourth straight month of electricity rate decrease represents a total downward adjustment of almost P1 per kWh since May,” the country’s biggest power distributor said.
Meralco attributed the lower rates to the lower charges at the Wholesale Electricity Spot Market, the country’s trading floor of electricity. The generation charge in August went down to P4.9620 per kWh from P5.4227 per kWh in July.
Meralco said WESM charges decreased by P6.2080 per kWh with the improved supply in the Luzon grid. Meralco sourced 11 percent of its July power supply from WESM.
Cost of power from Meralco’s independent power producers increased by P0.0911 per kWh despite the strengthening of the peso against the US dollar and lower fuel prices as a result of the quarterly repricing of Malampaya natural gas and continued decline in coal prices.
Higher IPP costs were largely due to the lower average plant dispatch with the scheduled maintenance of Sta. Rita Modules 20, 30 and 40 in July.
The cost of power from power supply agreements went down by P0.0656 per kWh due to lower fuel prices and peso appreciation as about 67 percent of PSA costs were dollar-denominated.
Meralco sourced 41 percent and 48 percent of its supply requirements from IPPs and PSAs, respectively.
Transmission charges for residential customers increased by P0.0334 per kWh while taxes and other charges also rose by P0.0097 per kWh.
Meralco’s distribution, supply and metering charges were unchanged from the July 2015 level.
Meralco said it was not earning 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 Corp. of the Philippines. Alena Mae S. Flores
Taxes and other public policy charges like the feed-in tariff-allowance are remitted to the government.
