MANILA -- Power rates will increase by 23 centavos per kilowatthour (kWh) mainly due to higher generation charges.
The Manila Electric Co. , in a statement, said that the new increase would bring the overall rate to Php 9.89 per kWh compared to last month's Php 9.67 per kWh. This means Php 45-hile for a typical residential household, which has a consumption of 200 kWh.
The power firm explained the increase, which amounts to PhP 5.10 per kWh, was due to higher charges from Independent Power Producers by 39 centavos per kWh and increased trading prices from the Wholesale Electricity Spot Market (WESM) by 78 centavos per kWh.
It also said higher IPP costs was due to the low dispatch of Quezon Power, while the increase in WESM prices was caused by power plant outages and higher demand. Overall, power demand in Luzon skyrocketed by 790 MW from February.
Meralco sourced its capacity from power supply agreements (PSA)and interim power supply agreements (IPSAs) at 52 percent, independent power producers at 34 percent and WESM purchases at 14 percent.
PSAs and IPSAs, on the other hand, decreased by 36 centavos per kWh.
The transmission charge also decreased by Php 0.06 per kWh due to lower ancillary service rates.
Taxes and other charges, however, increased by Php 0.09 per kWh.
The distribution charge, which is the sole charge attributed to the company, remained unchanged for 21 months.
Meralco pointed out it does not earn from pass-through charges, such as the generation and transmission charges.
Source: Philippines News Agency