Power rates down in May
from May 8, 2014 04:00 pm to May 8, 2014 04:00 pm
By Alena Mae S. Flores | May. 08, 2014 at 12:01am
Power distributor Manila Electric Co. said Wednesday customers will see electricity rates go down by P0.05 per kilowatt-hour in May, despite higher generation charges.
Meralco said this would translate into an almost P10 reduction in the consumers’ May electricity bill, for a typical household consuming 200 kWh.
Meralco, in a statement, attributed the downward adjustment to lower ancillary service component of the transmission charge, lower system loss and fewer customers who availed of the lifeline subsidy.
The company said the reductions in the other bill components offset a slight adjustment in the generation charge. Transmission charge dropped by P0.08 per kWh in the April supply month due to the lower cost of ancillary charges.
Meralco said there was also a cumulative reduction of P0.04 per kWh in subsidies and the system loss charge. Reduction in the system loss charge was mainly due to a lower system loss percentage to 6.5 percent from 6.6 percent last month.
Distribution charge, however, has remained unchanged since July 2013.
The generation charge inched up by P0.07 per kWh to P5.97 per kWh in May from P5.90 in April, after Meralco limited its purchases from the Wholesale Electricity Spot Market, where prices increased in May.
Meanwhile, the Energy Regulatory Commission set a secondary price cap of P6.245 per kilowatt-hour for the May and June power supply months to mitigate the anticipated higher prices at WESM.
ERC said in a resolution dated May 5 the secondary price cap would take effect upon breach of the generator weighted average price over a rolling 72-hour period on the threshold amounting to P8.816 per kWh.
Energy Secretary Carlos Jericho Petilla said ERC’s move is a “regulatory and mitigating intervention” with the intention of taming electricity prices.