Businesses can cut electric bills by P4/kWh using technology

By Myrna M. Velasco – March 15, 2022, 5:37 PM
from Manila Bulletin

Power-intensive businesses can save as much as P4.00 per kilowatt (kWh) on their electric bills if they will resort to demand-side management (DSM) on their power usage; and that entails shifting work load during off-peak hours when electricity rates are lower.

Ferdinand O. Geluz, first vice president and chief commercial officer of Manila Electric Company (Meralco), explained that DSM is one of the energy efficiency measures prescribed under Republic Act 11285 or the Energy Efficiency and Conservation Act, that businesses can enforce in the operations of their businesses.

The law prescribes that the Energy Regulatory Commission (ERC) will set the peak and off-peak tariffs that shall be charged to consumers; but even prior to that, some distribution utilities (DUs) – primarily Meralco – had already been voluntarily offering that as an option to their customers.

Apart from cost savings on the electric bills of business customers, the DSM approach will also help shave off peak demand, especially during summer months when electricity consumption across customer-segments will be escalating. That way, the torment of power interruptions or rotational brownouts can be prevented.

Within the so-called dry or summer months from January to June, the peak rate of Meralco has been calculated at P7.48 per kWh; while off-peak rate could skid to P3.55 per kWh or a difference of P3.90 per kWh.

Conversely, for the “wet months” from July to December, peak rate had been pegged at P7.28 per kWh; and off-peak tariff at P3.55 per kWh or a difference of P3.73 per kWh.

“For our power-intensive business customers, normally they have their own energy efficiency programs, especially now with the enactment of the Energy Efficiency Law. They can shift most of their consumption during low demand or what we call off-peak, then it will help them sort of manage their cost; as well as help in alleviating supply problems,” Geluz expounded.

Apart from the DSM scheme, he emphasized that another solution for businesses to save on power bills will be to use their rooftop spaces for solar installations; with him noting that based on the experience of their commercial and industrial (C&I) customers, they were able to log 50-percent decline in their electric bills.

“Normally, in our design that is 50-percent on savings on energy bills – that’s the total electricity sales that can be saved by using the proper size of solar rooftop system based on your consumption,” he pointed out.

Meralco’s subsidiary Spectrum has been the entity providing rooftop solutions not just to C&I customers of the power company, but also to residential end-users who have been shifting their energy usage to cleaner technologies.

Geluz further qualified “the prices may vary based on the type of equipment you will use and capacity that is ideal for your roof space,” but he indicated that the common narrative shared by their customers had been remarkable electricity bill reduction of up to 50-percent.