POWER DISTRIBUTOR Manila Electric Co. (Meralco) expects a reduction in generation charges for September, attributed to the strengthening of the peso and a decrease in demand.
“While we have yet to receive all the final billings from our suppliers, we expect a possible decrease in the generation charge this month,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in a Viber message on Wednesday.
He said that the anticipated decline in generation charges is due to the appreciation of the peso, which has reduced costs for suppliers that primarily deal in US dollars.
In August, the peso strengthened by P2.254, ending at P56.111 per dollar on Aug. 30, compared to P58.365 per dollar on July 31.
Additionally, Mr. Zaldarriaga noted a reduction in demand during the previous supply month.
“We hope that these factors would be enough to bring down the overall electricity rate for this month,” he said.
Generation charge, which usually makes up a bulk of an electricity bill, went down by P0.0503 per kilowatt-hour (kWh) in August.
Overall, Meralco announced a slight increase of P0.0327 per kWh, resulting in a new rate of P11.6339 per kWh for a typical household. This is an increase from the previous month’s rate of P11.6012 per kWh.
Wholesale Electricity Spot Market (WESM), independent power producers, and power supply agreements, accounted for 27%, 33%, and 40% of the company’s total energy requirement for the period.
For August, WESM prices at system-wide fell with supply ample in the face of strong demand, based on the preliminary data from the Independent Electricity Market Operator of the Philippines.
Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
