Power retailer Manila Electric Co. forecasts lower power generation charges for March on softer spot market prices and the availability of the 500-megawatt San Buenaventura coal plant in Mauban, Quezon.
“While we have yet to receive all the billings from our suppliers, initial indications show lower generation charge this March. This due to resumption of operations of the San Buenaventura power plant after undergoing maintenance, and lower WESM (Wholesale Electricity Spot Market) prices given the improved supply situation in the Luzon grid,” Meralco vice president and spokesman Joe Zaldarriaga said.
Preliminary data from WESM operator Independent Electricity Market Operator of the Philippines (IEMOP) showed that the average electricity prices declined by around P0.67 per kilowatt-hour from Jan. 26 to Feb. 19 due to lower power demand and full energization of the Mindanao Visayas Interconnection Project (MVIP).
Average supply was at 18,931 megawatts, higher than the January average supply of 18,197 MW. Demand was slightly lower at 12,196 MW from 12,282 MW in January.
Zaldarraiga said also contributing to the expected decrease in March rates is the refund of incremental natural gas charges under the new sale and purchase agreements directed by the Energy Regulatory Commission.
Meralco is implementing a P0.04 to P0.05 per kilowatt-hour refund pending the final approval of the ERC.
“We are hoping that this reduction in the generation charge will be able to temper the anticipated increase in transmission charge due to higher ancillary service charges,” Zaldarriaga said.
Meralco announced higher electricity rates in February of P0.5738 per kilowatt-hour on higher cost of power from its suppliers. This brought the overall rate for a typical household to P11.9168 per kWh in February from P11.3430 per kWh in January.
Residential customers consuming an average of 200 kWh saw an increase of around P115 in their monthly electricity bill.
Meralco is the country’s biggest power distributor with over 7.6 million customers in its franchise area.