Power rates down again this June
Meralco’s force majeure claims lead to lower generation rates for three straight months
June 14, 2020, 8:00 AM
from Manila Bulletin
Manila Electric Company (Meralco) announced today another downward adjustment of power rates, as the overall rate for a typical household decreased by P0.0216 per kilowatt hour (kWh), from last month’s P8.7468 per kWh to P8.7252 per kWh this June.
This is equivalent to a reduction of around P4 in the total bill of residential customers consuming 200 kWh.
With three straight months of generation rate reduction, and a total rate decrease of more than one peso per kWh since the start of the year, this month’s total rate is also significantly lower than that of June 2019, which was P10.0918 per kWh. This month’s total rate is also the lowest since February 2018.
Lower generation charge as Meralco claims force majeure
From P4.3848 per kWh last May, the generation charge decreased by P0.0435 per kWh to P4.3413 per kWh this June.
Because of the very significant reduction in power demand in its service area during the enhanced community quarantine (ECQ) and modified ECQ period, Meralco invoked the force majeure provision in its power supply agreements (PSAs) for the duration of the lockdown, reducing fixed charges for generation capacity that would have been charged by suppliers.
With three straight months of generation rate reduction, and a total rate decrease of more than one peso per kWh since the start of the year, this month’s total rate is also significantly lower than that of June 2019, which was P10.0918 per kWh. This month’s total rate is also the lowest since February 2018.
Lower generation charge as Meralco claims force majeure
From P4.3848 per kWh last May, the generation charge decreased by P0.0435 per kWh to P4.3413 per kWh this June.
Because of the very significant reduction in power demand in its service area during the enhanced community quarantine (ECQ) and modified ECQ period, Meralco invoked the force majeure provision in its power supply agreements (PSAs) for the duration of the lockdown, reducing fixed charges for generation capacity that would have been charged by suppliers.
This June, the force majeure (FM) claim totaled P614 million, equivalent to customer savings of P0.2208 per kWh, representing reduction in fixed costs from its baseload supply contracts and avoided charges from the temporary suspension of the mid-merit supply contracts recently approved by the Energy Regulatory Commission (ERC). Without the FM claims, generation charge and the total.
