Meralco power rates down this month
Credit to Author: Patrick Miguel| Date: Thu, 7 Mar 2024 00:00:00 +0800
MANILA, Philippines — Energy utility provider Manila Electric Co. (Meralco) has estimated a lower generation charge this month.
“While we have yet to receive all the billings from our suppliers, initial indications show lower generation charge this March,” Meralco vice president and head of corporate communications Joe Zaldarriaga said yesterday.
Lower prices in March can be attributed to the resumption of operations of the San Buenaventura power plant after undergoing maintenance, according to Zaldarriaga.
He added that the wholesale electricity spot market prices were lower following an improved supply situation in the Luzon grid.
“We are hoping that this reduction in the generation charge will be able to temper the anticipated increase in transmission charge due to higher ancillary service charges,” Zaldarriaga said.
Last month, Meralco increased rates by P0.5738 per kilowatt-hour, amounting to a total of P11.9168 per kwh overall rate.
The additional charges last February were due to the incremental Malampaya gas charges under the new Gas Sale and Purchase Agreements.
Refund order
The refund that was recently ordered by the Energy Regulatory Commission (ERC) has contributed to the decrease this month, said Zaldarriaga.
In response to ERC, Meralco senior vice president and head of regulatory management Ronald Valles said last month that they are ready to implement a refund in generation charges corresponding to the increase in the Malampaya gas price of First Gas plants.
“While Meralco admits that a validation of the impact of the use of LNG and the new gas supply contracts is necessary in light of the terms of its power purchase agreements, up to this date, the ERC has not been provided with the results of Meralco’s validation,” the commission said.
In an ambush interview, Valles said they were not able to validate it because First Gen has not given them a copy of the contract between First Gen and Malampaya.
“As early as I think January, we asked for that copy of the contract but we have not received it, so we were constrained to get clearance from the ERC,” Valles, a lawyer, explained.
However, ERC wrote them a letter at a time when customers were already billed.