Slight increase in power rates in July – Meralco
MANILA, Philippines – The Manila Electric Company (Meralco) on Friday, July 7, announced a slight increase in electricity rates for July.
The country’s largest power distributor announced in a statement that power rates will increase by P0.0761 per kilowatt hour (kWh) this month.
Meralco said the increase corresponds to a P15-increase in the total bill of a typical residential household consuming 200kWh. The overall rate, it said, is comparable to the January 2010 level.
Meralco said the July rate reflects the refund of overrecovery on pass-through charges from January 2014 to December 2016, totaling around P6.9 billion.
The refund will not be shown as a separate line item in the bill but is 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 P0.79 per kWh, excluding taxes.
Meralco said the overall generation charge increased by P0.0799 per kWh to P3.9385 per kWh in July from P3.8586 per kWh in June, mainly due to higher independent power roducers (IPPs) and wholesale electricity spot market (WESM) charges.
The cost of power sourced from the IPPs increased by P0.1751 per kWh due to the peso depreciation and lower plant dispatch.
Despite the impact of peso depreciation, the cost of power from power supply agreements decreased by P0.0176 per kWh due to lower coal prices and improved average plant dispatch.
There was also an increase of P0.0042 per kWh in the transmission charge of residential customers, while taxes and other charges went down by a combined amount of around P0.0080 per kWh.
Meralco said distribution, supply, and metering charges remained unchanged for 24 months since July 2015. – Rappler.com