More self-generating companies reconnect to Meralco grid in first half

MANILA, Philippines - Nine more self-generating companies have reconnected to the distribution system of Manila Electric Co. (Meralco) in the first half of 2009, generating more than 138 gigawatthours (gwh) from these firms, the power company said in a report.

“A total of nine self-generating companies were recovered in the first half of 2009 as fuel price increases made self-generation more expensive, making Meralco rates, notably the lower ecozone rates, more attractive,” Meralco president Jose de Jesus said.

In the report, Meralco only identified the top five companies that went back to the grid. These are: Carmelray Industrial Park 2 (30.2 gwh); Hitachi Computer Products (25.1 gwh); Nikko Metals Phils. Inc. (18.9 gwh); Mariwasa Siam Ceramics Inc. (13.3 gwh); and Wyeth Philippines (13.2 gwh).

Hitachi, Nikko and Wyeth have existing Meralco accounts but requested for additional load to be transferred to the Meralco grid. Carmelray and Mariwasa are new connections to the grid.

These companies availed of Meralco’s customer choice program (CCP) which offers relatively lower rates.

Under the CCP, Meralco customers with at least one megawatt consumption are allowed a choice between Napocor’s time-of-use (TOU) rates or Meralco’s blended generation rate.

The CCP is expected to reduce the cost of electricity to large users, industrial and commercial customers by making available Napocor’s lower TOU rates.

The program will help electricity users manage their consumption by shifting energy use from peak to off-peak hours. Electricity prices are lowest during off-peak hours — 10 p.m. to 7 a.m., and highest during peak hours — 10 a.m. to 4 p.m. and 6 p.m. to 9 p.m.

Meralco noted that one of the reasons why power system losses in other countries are lower is because the share of industrial sector to electricity consumption is much higher.

For instance, the share of Meralco’s industrial customers in electricity consumption is only 28.2 percent compared to Korea ‘s 52.9 percent, Taiwan ‘s 50.9 percent, Malaysia ‘s 45.4 percent and Thailand ‘s 48.8 percent.

Meralco is aiming to lower its system loss to almost nine percent, which is below the 9.5-percent cap set by the Energy Regulatory Commission (ERC). In the six-month period this year, Meralco’s system loss level stood at 9.05 percent. — Donnabelle Gatdula