Customers of the Manila Electric Co. (Meralco) will likely experience higher electricity rates in May driven by the P0.34 per kilowatthour increase in the generation charge.
Meralco’s generation charge went up to P7.6697 per kWh in May from P7.3295 per kWh, according to its latest billing distributed to consumers.
“There is an upward pressure on electricity bills this month, mainly due to the expected increase in the generation charge,” Meralco spokesman Joe Zaldarriaga said.
Higher demand drove Wholesale Electricity Spot Market prices in April, which will be reflected in the May billing. WESM is the trading floor for electricity.
“The peso depreciation, which affects our PSAs [power supply agreements] and IPP [independent power producer] contracts, may also weigh on the generation charge,” Zaldarriaga said.
He said this month’s generation charge will also include the last installment of deferred costs from last March, equivalent to about P0.20 per kWh.
“In addition, this month’s bills will reflect the P0.0433 per kWh increase in Universal Charge for Missionary Electrification as ordered by the Energy Regulatory Commission,” Zaldarriaga said.
In April, the overall rate for a typical household went down to P11.3168 per kWh from P11.4348 per kWh in March.
The generation charge went down to P7.3295 in April from P7.3790 per kWh, even with the collection of the first installment of deferred generation costs equivalent to around P0.20 per kWh this April billing period.
Meralco coordinated with its suppliers and the Energy Regulatory Commission to stagger the collection of a total of around P1.1 billion in generation costs to cushion the impact of the rate increase on its customers.
Also on Wednesday, Senator Risa Hontiveros urged the Department of Energy (DOE) and the National Grid Corporation of the Philippines (NGCP) to proactively address the looming power shortage.
She noted that blackouts and lack of power have been a yearly problem.
“And the appeal to the DOE and NGCP to act has been done annually. “But it seems that nothing is happening,” Hontiveros said.
She said these agencies should step up and put an end to the energy crisis once and for all.
She added that the DOE and NGCP should provide a transparent power and rates outlook for the coming days and months, following the unexpected power outages across Luzon and the Visayas due to the tripping of NGCP’s Bolo-Masinloc transmission lines.
“The DOE and NGCP should be honest on the condition of the power supply and what consumers can expect for the next years and months,” she said.
Hontiveros said the Senate appears to have been “taken for a ride” by Energy officials, such as Energy Secretary Raphael Lotilla, who assured them that the country’s electricity supply will remain adequate and stable for the year.
“Either the energy officials or the entire power system itself, is suffering from integrity problems,” Hontiveros said.
The senator further warned that the power shortage brought on by the coming El Nino and the resulting declining output from the Malampaya and hydroelectric projects would drive rates up.
“Consumers should not be forced to choose between two unpleasant alternatives. Only one should be given to us —an affordable and reliable supply of electricity,” Hontiveros said.
In addition, Hontiveros expressed significant concern that this worsening power crisis lends credence to the dubious argument that nuclear power is the only viable solution to the supply problems.
She argued that instead of incorporating nuclear power into the current power mix that can’t even be regulated properly, the government should prioritize the rapid development and deployment of distributed renewable energy systems, which offer greater variability, flexibility, and sustainability.
From the House, AnaKalusugan Rep. Ray T Reyes on Wednesday slammed the the NGCP over its pronoucement that the Luzon grid’s tight power supply situation is expected to continue with the possibility of outages.
“Why would you blame electricity consumers for their power woes when, by law, you should already have ready solutions for demand surges due to the summer season?” Reyes, vice chair of the House committee on health, said in a statement.