By Kris Crismundo | Philippine News Agency
The Manila Electric Company (Meralco) announced Monday that the power rate in its franchise areas increased by P0.0327 per kilowatt hour in August to P11.6339 per kWh from P11.6012 per kWh in July.
“For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around P7 in their total electricity bill,” the distribution utility said in a statement.
Higher transmission charges pushed the increase in the Meralco rate this month.
Meralco said transmission rates went up by P0.1086 per kWh as the grid operator increased ancillary service charges to help maintain grid reliability. This month, these charges rose by over 50%, with costs for contingency and dispatchable reserves doubling.
“The transmission charge increase more than offset the P0.0503 per kWh reduction in the generation charge,” it added.
Charges from Independent Power Producers (IPPs) declined, while rates from the Wholesale Electricity Spot Market (WESM) and Power Supply Agreements (PSAs) were higher this month.
Meralco sourced 40% of its requirements from PSAs, 33% from IPPs, and 27% from WESM.
Meralco also advised its customers of a possible increase in generation costs from First Gas – Sta. Rita and San Lorenzo, which use Malampaya gas.
After the old Gas Sale and Purchase Agreement (GSPA) expired last month, the supply of Malampaya natural gas to San Lorenzo is now covered by a new GSPA between First Gas and the Malampaya Consortium, similar to Sta. Rita, but the pricing formula from the old GSPA is still being used for both plants until the new agreement gets regulatory approval.
“Once the new GSPAs are approved, this will certainly affect the generation charges of Sta. Rita and San Lorenzo,” Meralco vice president and head of corporate communications Joe Zaldarriaga said.
