Meralco expects lower power generation charge for December
POWER DISTRIBUTOR Manila Electric Co. (Meralco) is expecting a lower generation charge for December amid a decline in demand and fewer plant outages.
“Initial indications show a possibility of lower generation charge this coming December,” Meralco Spokesperson Joe R. Zaldarriaga told reporters in a Viber message.
“We observed an improved supply situation due to lower demand and fewer plant outages, which are expected to bring down prices in the WESM (Wholesale Electricity Spot Market),” he added.
According to Meralco’s monitoring, the average capacity on outage was lower by more than 600 megawatts (MW) while the average demand likewise was lower by around 400 MW.
As of early October, the average WESM price in Luzon rose to P7.58 per kilowatt hour (kWh) from P4.87 kWh in September. Electricity spot market price also rose in the Visayas to P8.49 per kWh from P6.36 per kWh previously.
Meanwhile, the average spot market price in Mindanao declined to P4.96 per kWh during the period, from P5.71 per kWh in September.
In November, the power distributor raised its household rate by P0.23 per kWh, bringing the overall rate for a typical household to P12.05 per kWh due to an increase in transmission charges.
The electricity rate was higher than last month’s P11.82 per kWh.
The transmission charge increased by P0.12 per kWh due to higher ancillary service charges, which then climbed to P91.35 per kWh.
Generation rates last month also jumped by P0.07 to P7.19 per kWh.
Currently, Meralco is looking for suppliers for its 1,800 MW and 1,200 MW baseload capacity supply requirements to ensure a continued supply of electricity for its consumers.
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 a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
