Meralco expects lower generation charges in August
By Alena Mae S. Flores – August 4, 2023, 8:55 pm
from manilastandard.net
Customers of Manila Electric Co. may enjoy lower generation charges in August on reduced demand, an executive said Friday.
“While we have yet to receive the final billings from our suppliers, we expect a possible decrease in the generation charge this month. We’ve seen reduced demand in the last supply month, which likely led to lower WESM (Wholesale Electricity Spot Market) prices,” Meralco vice president and spokesman Joe Zaldarraiga said.
WESM, the trading floor of electricity, posted a decline in prices in the first half of July by P0.60 per kilowatt-hour in the Luzon and Visayas grids, according to the Independent Electricity Market Operator of the Philippines.
WESM operator IEMOP attributed the lower spot market prices to reduced demand during the period as a result of the rainy season and tropical depression Dodong.
This will be the second consecutive month of lower electricity prices after Meralco reported a reduction of P0.7213 per kWh in July on lower cost of generation from the company’s suppliers.
“The quarterly repricing of Malampaya will also reflect the lower crude prices over the past six months. The peso appreciation, which affects suppliers’ costs that are mostly dollar denominated, will also help further pull down the generation charge,” Zaldarriaga said.
Meralco’s overall rate for a typical household amounted to P11.1899 per kWh in July and P11.9112 per kWh in June.
“We are optimistic that these factors would be enough to bring down the overall electricity rate for this month,” he said.
Meralco’s generation charge went down by P0.6436 per kWh to P6.6066 per kWh in July from P7.2502 per kWh in June.
Meanwhile, Zaldarriaga said Meralco completed on Friday morning the restoration works on the collapsed electricity posts in Binondo, Manila
Power supply was also restored to affected communities.
Zaldarriaga said investigation was ongoing to determine the cause of the incident.
Meralco is the country’s biggest power distributor with over 7.6 million customers in its franchise area.
