MANILA, Philippines - Manila Electric Co. (Meralco) customers that take advantage of the cheap off-peak rates will likely face higher costs next year with the expiration of special rates from National Power Corp. (Napocor).
But Meralco said it is seeking regulatory approval for a new peak/off-peak program (POP) that will replace existing special rates.
In a public notice, Meralco said basic generation charge under the proposed new time-of-use (TOU) program is P7.4854 per kilowatt-hour (kwh) for the peak period and P3.5461 per kwh for off-peak in January to June.
Basic generation rate is P7.2779 per kwh and P3.5461 per kwh for peak and off-peak, respectively, for July to December.
However, it is costlier than the current price of P6.4852 per kwh for peak period and P3.0925 per kwh for off-peak in January to June, and the P6.0153 per kwh for peak and P3.0925 for off-peak in July to December.
Off-peak periods where electric rates are lowest, from midnight to 8 a.m. for Mondays to Saturdays, and 12 midnight to 6 p.m. and 8 p.m. to 12 midnight on Sundays.
The TOU is an energy pricing scheme approved by the Energy Regulatory Commission (ERC), with rates based on the time of day electricity is produced and on the cost of supplying electricity during that time.
TOU gives qualified Meralco customers the opportunity to enjoy lower electricity rates during off-peak periods. Meralco’s transition supply contract with Napocor will expire on Dec. 25, 2012.
“At the same time, Meralco-Napocor special rate programs, namely, the Customer Choice Program (CCP) and the Ecozone Rate Program (ERP), will no longer be available by then,” Meralco said.
Alfredo Panlilio, senior vice president and head for Meralco customer retail services, said customers shifting to the POP will enjoy savings of up to 10 percent on the average versus blended rates in their monthly bills depending on their peak and off-peak consumption.
In its application, Meralco said the expiration of the special rates will increase the cost of production of 86 CCP and 352 ERP customers. “It will likely have a ripple effect in the Philippine economy,” Meralco said.
Meralco customers with consumption levels of at least 500 kwh per month for residential customers and at least five kilowatt average demand for non-residential customers are eligible to enroll in the POP program.