This month, Meralco customers can rejoice as power rates have decreased
Manila Electric Co. (Meralco) has forecasted a decrease in generation charges for this month, providing some relief to consumers. According to Joe Zaldarriaga, Meralco’s vice president and head of corporate communications, preliminary assessments indicate a dip in generation charges for March.
One contributing factor to the lower prices this month is the San Buenaventura power plant’s return to operation following maintenance work, Zaldarriaga noted. Additionally, wholesale electricity spot market prices have declined due to an improved supply situation in the Luzon grid.
However, Zaldarriaga cautioned that while the reduction in generation charges is welcome, there may be an offsetting increase in transmission charges, particularly ancillary service charges.
Last February, Meralco raised rates by P0.5738 per kilowatt-hour, resulting in an overall rate of P11.9168 per kWh. This increase was primarily driven by incremental Malampaya gas charges under new Gas Sale and Purchase Agreements.
The recent refund order from the Energy Regulatory Commission (ERC) has also contributed to the decrease in charges this month, Zaldarriaga explained. Meralco is prepared to implement the refund in generation charges corresponding to the rise in Malampaya gas prices for First Gas plants.
However, there have been challenges in validating the impact of using liquefied natural gas (LNG) and the new gas supply contracts due to delays in receiving necessary documentation from First Gen, the operator of the Malampaya gas field. Despite Meralco’s efforts to obtain the required information, including requesting a copy of the contract between First Gen and Malampaya since January, they have yet to receive it.
As a result, Meralco was unable to validate the impact before customers were billed, leading to concerns from the ERC. Despite the challenges, Meralco remains committed to transparency and compliance with regulatory requirements to ensure fair billing practices for consumers.
News: This month, Meralco customers can rejoice as power rates have decreased
