Electricity rate slightly increases this October

October 9, 2017

Meralco announced an increase for October, amounting to 0.0345 centavos per kWh for a typical residential household, bringing the overall rate from last month’s P9.2491 per kWh to P9.2836 per kWh. The slight rate increase this month amounts to a P6.91 increase in the total bill of a typical residential household consuming 200kWh.

The October rate increase is mainly due to the 0.1777 centavos per kWh increase in generation charge, which was offset by the reduction in other charges, the power firm said in a statement on Monday.

Overall generation charge increased this October by 0.1777 centavos per kWh, from P4.5378 per kWh in September to P4.7155 per kWh this month primarily due to the completion of the 2014-2016 Meralco-petitioned refund in the previous month, which lowered the September generation charge rate compared to the October generation charge.

On September 7, 2017, Meralco filed a Manifestation with the ERC informing the Energy Regulatory Commission of the necessary process of reconciliation, which resulted from the implementation of the refund through a fixed rate.

The reconciliation was reflected last month as a reduction of P0.1136 per kWh in the overall generation charge. Reconciliation for other components, which includes transmission and system loss charges, subsidies and corresponding taxes, reflected a net collection of P0.1257 per kWh.

Cost of power from power supply agreements and independent power producers registered slight increases due to higher fuel prices and lower average plant dispatch, respectively. The shares of PSAs and IPPs to Meralco’s total requirements stood at 43 percent and 45 percent, respectively.

Charges from the wholesale electricity spot market decreased by 0.4382 centavos per kWh, as lower power demand during the September supply month mitigated the impact of four yellow alert declarations by  The National Grid Corporation of the Philippines. DMS