By Sheldeen Joy Talavera, A reporter
CUSTOMERS in areas served by Manila Electric Co. (Meralco) will receive a reduction in its electricity bills this month, mainly due to the low cost of generating electricity at this time.
The rate will decrease by P0.2189 per kilowatt-hour (kWh) to P11.7428 kWh in January from P11.9617 kWh in December, the electricity distributor said in a statement on Monday.
This will translate into a P44 reduction in electricity prices for customers using 200 kWh. Those using 300 kWh, 400 kWh, and 500 kWh will see a reduction of P66, P89, and P112, respectively, in this month’s bills.
Meralco said it lowered electricity prices after the generation charge dropped by P0.1313 kWh to P6.8358 kWh due to lower costs from the Wholesale Electricity Spot Market (WESM) and independent power producers (IPPs).
The cost of WESM decreased by P0.8840 kWh due to the improved supply situation in the Luzon grid as both average peak demand and aver.The amount of blackouts has decreased.
Charges from IPPs decreased by P0.1593 per kWh due to the appreciation of the peso, which affected 97% of costs that were in dollars. Low fuel costs and high shipping First Gas-Sta. The Rita plant also contributed to the decline.
The peso closed at P57.845 on Dec. 27, appreciated by P0.775 from its close of P58.62 on Nov. 29.
“This reduction was offset by a P0.5638 kWh increase in costs from power supply agreements (PSAs) due to lower equipment shipments,” the company said.
WESM, IPPs, and PSAs accounted for 34%, 30%, and 36%, respectively, of Meralco’s total energy demand for the period.
In other segments, transmission and other costs decreased by P0.0876 per kWh.
The pass-through costs of generation and transmission of energy are paid by the energy supplier and the grid operator, respectively. Taxes, international charges, and the Feed-in Tariff Allowance are all remitted to the government.
Meralco’s distribution cost remains unchanged at P0.0360 kWh as of August 2022.
“Even though electricity prices have decreased this month, we would like to remind our customers to continue using electricityffun as a way of life especially during the dry season is fast approaching,” said Joe R. Zaldarriaga, Meralco vice president and head of communications.
Meanwhile, Meralco customers may expect a slight reduction in their energy bills in February as the Energy Regulatory Commission (ERC) earlier directed distribution utilities to recover all accumulated and unused regulatory reset professional fees. All future collection of these fees was also stopped.
“For Meralco, this means a one-time refund of 22.6 centavos per kWh and another refund that will appear as a separate item on the bill of P0.0023 per kWh. Therefore, this will be reflected in customer bills for February,” said Lawrence S. Fernandez, Meralco vice president and head of Economics, said in the briefing.
To recall, the ERC also approved the acquisition of the remaining P3.277 billion of electric generators that served the reserve market in February and March 2024.
The approved price will be charged to consumers in Luzon over a period of three months, with an additional P0.12 per kWh in the transmission fee starting in February.
The reserve market allows the system operator to obtain energy reserves from the WESM to meet the specified needs of the energy system. Its full commercial operation began in January last year.
Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., a division of PLDT Inc. Hastings Holdings, Inc., a PLDT Beneficial Trust Fund unit of MediaQuest Holdings, Inc., has an interest in the PLDT Beneficial Trust Fund BusinessWorld by PhilipPine Star Group, which controls it.
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