Meralco bills for May down P0.05 per kWh

In a surprising turn of events, Manila Electric Co. (Meralco) customers will see their electric bills for May go down by 5 centavos per kilowatt hour (kWh) as lower transmission charge and system loss offset the higher generation charge for the month.

 

A household consuming 200 kWh a month will see a P10 decrease in its electric bill this month while those consuming 300 kWh will have a P15 decline.

 

Last month, the Energy Regulatory Commission (ERC) warned of higher electricity bills in May, mainly because of a higher generation charge due to a surge in electricity demand and the maintenance shutdown of several power plants during summer.

 

The downward adjustment is because of lower ancillary service component of the transmission charge, lower system loss, and fewer customers who availed of the lifeline subsidy, Meralco said in a statement Wednesday.

 

The distribution utility made less Wholesale Electricity Spot Market (WESM) purchases in the April supply month, said Alfredo S. Panlilio, Meralco senior vice president for customer retail services and corporate communications.

 

“Our preparations to meet increasing demand this summer has allowed us to reduce the share of WESM purchases from 3.9 percent in the March supply month down to 3.4 percent in April,” Panlilio added.

 

The preparations included deliveries from Toledo Power and Panay Power after the Interim Power Supply Agreements (IPSAs) were signed and the sub-transmission line project was completed, allowing Therma Mobile to increase its available capacity from 150 MW to 200 MW beginning April 23.

 

Unit 1 of Ilijan power plant also resumed operations earlier-than-scheduled.

 

The generation charge inched up by 7 centavos per kWh to P5.97 per kWh from P5.90 per kWh, while the cost of power from the Independent Power Producers went down by P0.13 per kWh, tempering the 7 centavo per kWh increase in the average rate of energy from power supply agreements.

 

While electricity rates are down this May, Meralco cautioned customers to continue to observe energy efficient practices to help manage their consumption this summer, as "household electricity consumption is usually highest in summer,” Panlilio said. – Danessa Rivera/VS, GMA News