Flat generation charge lowers electricity bills in July

MANILA, Philippines - Over four million customers of Manila Electric Co. in 25 cities will enjoy lower electricity bills for the third time this month, head of utility economics Ivanna dela Pena said. Generation charge, which is a pass-through component that covers the cost of producing energy, remain flat at P4.2620 per kilowatt-hour (kWh) in July from P4.2583 per kWh level in June. Dispatch of independent power producers (IPPs) improved while prices in the wholesale electricity spot market (WESM) remained low, dela Pena said. “The low generation charge achieved after two months of successive declines has been maintained for July. With rates at almost the same level as that in June, the close to 80 centavos cumulative reduction experienced by our customers the past two months had been preserved," she said. Meralco, which has 86 municipalities in its franchise area, sourced its 12.5 percent of its June requirements from WESM while dispatch of IPPs went up to 76 percent in from 72 percent in May. WESM is where trading of electricity happens to create a level playing field for suppliers and buyers. Generation charge has been declining since April at P5.0205 per kWh in April to P4.4235 per kWh in May. "We have always maintained that whatever savings we incur from the cost of power we obtain from our suppliers would be passed on to our customers in the form of lower electricity bills," Meralco external communications manager Joe Zaldarriaga said. -GMANews.TV