By Krista Angela M. Montealegre
National Correspondent

AFTER a record reduction in June, electricity users in Metro Manila and surrounding areas will see a marginal increase in their power bills this month, as distribution utility Manila Electric Co. (Meralco) announced a P0.0761-per-kilowatt-hour (/kWh) uptick in basic charges.

As a result, the overall rate will inch up to P8.25/kWh this month — comparable to the level in January 2010 — from P8.17/kWh last month, Meralco said in a statement.

A typical household consuming 200 kWh a month will see a P15 rise in their electricity bills.

The July rate, Meralco said, reflects the refund of some P6.9 billion in over-recovery of pass-through charges from January 2014 to December 2016. The refund, scheduled from June to August 2017, will translate to a P0.79/kWh reduction, excluding tax, for residential customers.

Meralco customers enjoyed a record P1.43/kWh drop in their June electricity bills because of the refund.

Overall generation charge rose by P0.0799/kWh to P3.9385 per kWh this month, from P3.8586 per kWh in June, mainly due to higher charges from independent power producers and the wholesale electricity spot market (WESM).

IPPs and WESM account for 40.8% and 12.4% of Meralco’s total requirements, respectively.

A weaker peso and lower plant dispatch pushed IPP costs by P0.1751/kWh, while purchases from WESM increased by P0.4548/kWh due to billing adjustments, which include the additional compensation approved by the Philippine Electricity Market Corp. (PEMC) for the Must-Run Unit operations of Malaya power plant from 2012 to 2015.

PEMC operates WESM, a trading platform where distributors buy power they require beyond what their supply contracts provide.

The cost of power from power supply agreements (PSA), which account for 46.8% of Meralco’s total requirements, fell by P0.0176/kWh due to lower coal prices and improved average plant dispatch.

For other electricity bill components, transmission charge for residential customers slightly increased by P0.0042/kWh, while taxes and other charges slipped by a combined P0.0080/kWh.

Meralco’s distribution, supply, and metering charges have remained unchanged for 24 months after the registered reduction in July 2015.

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 interest in BusinessWorld through the Philippine Star Group, which it controls.

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