Typical households in Areas operated by Manila Electric Co. (Meralco) can expect higher electricity accounts this month, since the power distributor is set to increase the rates with P0.2639 per kilowatt hour (kWh) due to higher transmission charging and feed-in rating allowance (Fit-All).
The upward adjustment pushed the total rate to P12.2901 per kWh in March of P12.0262 per kWh in February, the company said in a statement on Tuesday.
Households that consume 200 kWh see their monthly electricity accounts rising around P53. Those who consume 300 kWh, 400 kWh and 500 kWh must pay an extra P79, P106 and P132 respectively.
Meralco attributed the interest rate increase to the conclusion of the one-off reimbursement of legal reset compensation, equal to P0.2264 per kWh for its customers. The reimbursement was implemented last month as ordered by the Energy Regulatory Commission (ERC).
Also contributed to higher rates, the P0.1294 per kWh -increase in transmission -loading as a result of higher additional service costs incurred by the National Grid Corp. of the Philippines. The transmission costs for March also include the second of three monthly collections for the repair of the costs of reserve market suppliers.
The ERC stated the restoration of the remaining 70% of the reserve control costs that were incurred in March last year. This will be reflected until April in the accounts of customers.
Adding to the upward adjustment was the implementation of the new fit-all speed of P0.1189 per kWh, which was higher than the previous percentage of P0.0838 per kWh.
The Fit-All is a uniform charge that is invoiced to all on-grid electricity consumers to support the development and promotion of renewable energy.
Other costs, including taxes, rose with P0.0416 per kWh.
“Such increases were limited by the lower generation costs for the delivery month in February that influenced the Billings of Meralco customers of March. The reduction is almost 17 centavos per kWh in generation, “said Joe R. Zaldarriaga, vice-president of Meralco and head of Corporate Communications, during a briefing in Filipino.
The generation of cargo fell with P0.1686 per kWh to P7.0517 from P7.2203 per kWh last month due to lower costs from the supply sources of Meralco.
The PESO rating against the US dollar pushed the costs of Independent Power Producers (IPP) and food agreements (PSA) to P1.0143 per kWh and P0.2934 per kWh, respectively. About 98% of the IPP costs and 61% of the PSA costs were generated by dollars.
The Peso closed on P57.995 on 28 February and strengthened 37 centavos of its P58.365 finish on January 31.
Costs in the Wholesale Electricity Spotmarkt (WESM), the trade floor of electricity, fell with P0.2247 per kWh due to the improved supply situation in Luzon.
IPPs, PSAs and WESM accounted for 31%, 47%and 22%of the total energy requirement of the company for the period.
“Pass-through loads for generation and transmission are paid by Meralco to energy suppliers and the grid operator, respectively; While taxes, universal costs and fit-all are all transferred to the government, “said Meralco.
Since August 2022, the distribution costs of the company have not been moved on P0.0360 per kWh.
Lawrence S. Fernandez, vice-president of Meralco and head of utility economy, said that prices can shoot on the spot after the explanation of a yellow Alert about the Luzon grid last week.
‘Let’s see what will happen for the rest of the month. The question has been a bit moderated after that one time of yellow alert. So we will have to see what the situation will be for the rest of the month, “he said.
In the meantime, Mr Zaldarriaga said that Meralco’s energy requirements are completely covered by his suppliers as the summer season approaches.
“We have concluded an emergency aid agreement to cover our requirements, especially during peak load in the summer months. Although it has not been officially explained, we already feel the impact of the temperature levels on our question, “he said.
“So, as long as there will be no unplanned and forced malfunctions of the plants and as long as the transmission can deliver the load on the power plants, we see no problems coming the summer months,” he added.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT favorable Trust Fund Daughter Mediaquest Holdings, Inc., has an interest in Business world Via the Philippine Star Group, which checks it. – Sheldeen Joy Talavera