RESIDENTIAL CUSTOMERS in areas served by Manila Electrical Co. (Meralco) will see greater electrical energy payments this month as a result of improve in transmission expenses.
In an announcement on Wednesday, Meralco stated that the general charge will climb by P0.1543 per kilowatt-hour (kWh) to P11.7882 per kWh in September from P11.6339 per kWh final month.
Households consuming 200 kWh will see their month-to-month payments go up by round P31. These consuming 300 kWh, 400 kWh, and 500 kWh must pay an extra P46, P62, and P77, respectively.
“Driving this month’s total charge adjustment is the P0.2913 per kWh improve within the transmission cost for residential clients on account of greater ancillary service expenses following the resumption of economic operations of the reserve market on Aug. 5, 2024,” the ability distributor stated.
Meralco stated the overall ancillary service expenses from the reserve market have been double the costs from the Nationwide Grid Corp. of the Philippines’ (NGCP) ancillary service procurement offers. The share of ancillary service expenses to the NGCP’s transmission charge jumped to over 50%.
“If not for the rise in transmission cost, we may have had a discount this month,” Meralco Vice-President and Head of Company Communications Joe R. Zaldarriaga stated in Filipino throughout a briefing.
Meralco stated that greater transmission cost had greater than offset the decrease era cost, which fell by P0.1547 per kWh.
The corporate attributed the decline in era cost to the peso’s current power. The native unit closed at P56.11 per greenback on Aug. 30, which Meralco claimed was the “strongest stage” since December 2023.
Meralco stated the peso appreciation affected 50% of the prices of energy provide agreements (PSAs) and 97% of prices of unbiased energy producers (IPPs) that have been greenback denominated.
This led to the P0.2371 per kWh and P0.0529 per kWh reductions in PSA and IPP expenses, respectively.
Expenses from the Wholesale Electrical energy Spot Market (WESM) likewise went down by P0.0514 per kWh.
“This already factored within the ultimate of 4 installments of deferred Could 2024 WESM prices earlier ordered by the Vitality Regulatory Fee (ERC),” the corporate stated.
PSAs, WESM, and IPPs accounted for 46.2%, 27.3%, and 26.4% of the corporate’s complete vitality requirement for the interval.
Taxes and different expenses went up by P0.0177 per kWh.
“Cross-through expenses for era and transmission are paid to the ability suppliers and the grid operator, respectively, whereas taxes, common expenses, and Feed-in Tariff Allowance (FIT-All) are all remitted to the federal government,” Meralco stated.
The distribution cost has remained unchanged at P0.0360 per kWh since August 2022.
POSSIBLE RATE ADJUSTMENTS
Meralco stated that the purchasers might search aid from the era cost in October as the gathering of the deferred WESM quantities will finish this month.
In June, the ERC directed to stagger the gathering of expenses associated to WESM purchases over a four-month interval to melt the impression of the excessive era charges.
The ability distributor stated, nevertheless, that the Malampaya pricing below the brand new gasoline sale and buy agreements (GSPA) of First Fuel vegetation will probably be applied beginning the September provide month, which will probably be mirrored within the October billing, below the directive of the ERC.
Lawrence S. Fernandez, Meralco’s vice-president and head of utility economics, stated that implementation of the brand new GSPA will probably lead to a 40-centavo-per-kilowatt improve within the energy price.
The corporate added that the price differential between the outdated and new GSPAs as much as the August provide month will probably be recovered over 12 months starting in subsequent month’s billing.
Meralco additionally anticipates the doable impression of the remaining 70% of the quantity due on reserve market transactions for the March billing month.
Mr. Fernandez famous, nevertheless, that they’ve but to know when the NGCP will begin billing the remaining reserve market transaction.
Meralco’s controlling stakeholder, Beacon Electrical Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Useful Belief Fund subsidiary MediaQuest Holdings, Inc., has an curiosity in BusinessWorld by way of the Philippine Star Group, which it controls. — Sheldeen Pleasure Talavera
