Meralco rates up this month

MANILA, Philippines - The Manila Electric Co. (Meralco) will increase this month its electricity rates by 2.5 centavos per kilowatt-hour (kWh) in its franchise areas.

Meralco vice president and utility economics head Ivanna de la Peña said this will be the first time in three months that customers will see an increase in their bills.

De la Peña explained that with the four centavos per kWh refund to be implemented this month, the increase would be mitigated.

“We, however, want to stress that since the four centavos currency exchange rate adjustment (CERA) refund will be implemented this month, customers will actually see a net 1.5 centavos reduction in their March bills.”

She further noted that the higher cost of supply from both the Wholesale Electricity Spot Market (WESM) and the National Power Corp. (Napocor) due to the warmer weather was mitigated by a decline in the average selling rate of the Independent Power Producer’s (IPP’s) to Meralco, resulting in minimal 2.5 centavos increase in generation charge.

The cost of WESM supply, she said, was tempered by the P224-million Net Settlement Surplus (NSS) for November and December 2008 returned to customers this month.

The cost of Napocor supply, on the other hand, was driven by the significant increase in Meralco’s purchases from Napocor during peak hours, from 52 percent in January to 61 percent in February. 

De la Peña reiterated that future movements in the generation charge would depend on a number of factors.

These include the cost of fuel used in power generation, the peso/dollar exchange rate, supply and demand conditions as these impact on the prices in the WESM and the dispatch of the IPPs, and Energy Regulatory Commission approvals on the Napocor rate.

“These factors, all of which are beyond the control of Meralco, will be closely monitored and their potential impact on electricity prices assessed,” said De la Peña.

Meralco also explained that in the past, it does not earn a single centavo from the adjustments in the cost of power supplied to it by the power producers.

Napocor earlier announced that it would raise its rates by 47 centavos per kWh, which would be reflected in the April billing of Meralco customers. Meralco, however, said that since it does not source all of its power requirements from Napocor, there would only be an estimated 17-centavo per kWh adjustment in its generation charge.

Meralco urged its customers to use electricity wisely during the summer months since consumption levels usually rise in this period.

Meralco external communications manager Joe Zaldarriaga said simple but often neglected energy saving tips are a big help in lowering electricity consumption, especially in households.

“Very simple tips such as using compact fluorescent lights instead of incandescent bulbs, doing your ironing at one time, and opening refrigerators only when needed will, in one way or the other, help a household save electricity. Consumers actually have the power to control their usage,” he said.

Meralco added that appliances would operate more efficiently and use less energy when they are in good condition.

It said since the summer months are vacation time for schoolchildren, appliance usage is also expected to go up.

“We also advise our customers to make sure that their household appliances are well maintained in order to cope with the expected increase in their usage,” Zaldarriaga said.

To guide consumers on electricity usage, Meralco consumers may access the Meralco Appliance Calculator or MAC in its website at www.meralco.com.ph

The MAC is a computer-aided device that computes the consumption amount of common household appliances. 

“This will help guide consumers on how to utilize their appliances,” Zaldarriaga said.