MANILA Electric Co. (Meralco) expects a reduction in the cost of power procured from suppliers for the October billing cycle, attributed to lower electricity prices in the Wholesale Electricity Spot Market (WESM), a company official said.
“Initial indication shows a possible decrease in the generation charge in the October billing,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in a Viber message on Tuesday.
“This is primarily driven by lower WESM charges as prices went down due to reduced demand brought about by cooler temperatures in the September supply month,” he added.
Preliminary data from the Independent Electricity Market Operator of the Philippines (IEMOP) showed that the average power price system-wide declined by 34.7% to P3.88 per kilowatt-hour (kWh) in September from P5.94 per kWh a month earlier.
IEMOP, the operator of the Wholesale Electricity Spot Market, attributed the decline to cooler weather conditions, which reduced demand.
WESM is where energy companies can buy power when their long-term contracted power supply is insufficient for customer needs.
“Also contributing to this is the end of the collection of the deferred May 2024 WESM costs last month,” Mr. Zaldarriaga said.
To recall, the Energy Regulatory Commission directed the staggered collection of charges related to WESM purchases over a four-month period to mitigate the impact of high generation rates.
Last month, Meralco customers saw an increase in their electricity bills due to higher transmission charges.
Overall rate climbed by P0.1543 per kWh to P11.7882 per kWh in September from P11.6339 per kWh in August.
Generation charge, which usually accounts for at least 50% of the monthly electricity bill, went down by P0.1547 per kWh last month.
Transmission charge, on the other hand, rose by P0.2913 per kWh due to higher ancillary service charges following the resumption of commercial operations of the reserve market in August.
Meralco is the main power distributor for Metro Manila and nearby areas, covering 39 cities and 72 municipalities, delivering power to at least 7.6 million customers.
Meralco’s controlling stakeholder, 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
