Meralco sees lower power rates in July as demand declines

By Alena Mae S. Flores – July 2, 2023, 6:15 pm
from manilastandard.net

Power retailer Manila Electric Co. forecasts electricity prices to go down this month amid to lower demand due to the onset of the rainy season.

“Initial indications show a possibility of lower generation charge in the July bills. This is due to lower demand we’ve observed with the onset of the rainy season which could have an effect on WESM [Wholesale Electricity Spot Market] prices,” Meralco spokesperson Joe Zaldarriaga said.

Average WESM prices declined by P1.73 per kilowatt-hour in the first two weeks of June driven by demand reduction and supply increase.

Average WESM prices in Luzon and Visayas dropped to P7.10 per kWh as of June 12 from P8.83  per kWh in May.

“In addition, prices of coal in the international market have also gone down and will likely reflect in our suppliers’ charges in the incoming billing month,” Zaldarriaga said.

Meralco is expected to release its July rates next week.

The company announced an increase in rates by  P0.4183 per kWh last month due to the completion of the last refund and higher prices at the spot market.

Meralco’s overall rate for a typical household went up to P11.9112 per kWh from P11.4929 per kWh in May.

Peak demand in May reached 12,431 megawatts, the highest so far on record.

The grid was also placed on yellow and red alerts last May 8.

Meralco sourced the bulk of its requirements from its power supply agreements, followed by the independent power producers and the WESM.

Meralco is the country’s biggest power producer with over  7.6 million customers in its franchise area.