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Meralco generation fee at all-time high of P10.23/kWh this January

The generation charge of Manila Electric Company (Meralco) this month is at all-time high of P10.2279 per kilowatt hour (kWh), based on its final computation.

However, its 5.3 million customers will not feel the brunt of that rate hike yet this month because the utility firm decided to freeze its generation charge at P5.67 per kWh, the level which was anchored on the temporary restraining order (TRO) of the Supreme Court on its December rate hike of P4.15 per kWh.

Given the rate freeze, P4.56 per kWh of January generation charge plus taxes will be deferred again for pass-on to Meralco customers.

The December generation charge had deferred pass-on of P3.44 per kWh, and including all the other rate components, it summed up to P4.15 per kWh. For the two months, the running total will be P8.71 per kWh.

It was gathered that Meralco has been planning to seek another round of payment deferment to its power generator-suppliers, but its management has yet to firm up plans on this.

No computation was given yet as to how much will this cost the power generators. In December, the total unpaid amount to them, including that of the National Grid Corporation of the Philippines, had been placed at P7.621 billion.

Meralco assistant vice president Lawrence S. Fernandez said “for the January billing, Meralco will bill the generation charge of P5.67 per kWh in deference to the SC TRO.”

He noted, however, that the actual billing for this month should have been at P10.23 per kWh, which infers then that the portion which may not be passed on now may be recovered once the high court’s restraining order is lifted.

“The reason for the increase is still the Malampaya shutdown which crossed two billing periods coupled with the scheduled, extended and forced outages of generation plants in December,” Fernandez said.

The Meralco executive emphasized that the company “will address the uncollected pass-through generation charge for both December and January billings as may be directed by the SC and/or ERC (Energy Regulatory Commission).”

The rate hike of Meralco in December was stopped by the country’s high court. And while some billings have already been released prior to the SC ruling, the utility firm noted that it will refund payments already made by its customers.

  • underthePhilippineSun

    this country is really trouble when it comes to electric power… the top govt echelons should take a heed and should take long term plan for this issue… nuclear is a good option to consider but needs further study and evaluation…

  • redkoenig

    Wait a minute; i’m confused…Meralco is a power distributor, not a power generator, am i wrong here?? Has that changed? I need Ms. Velasco to check on this.

    • alainrs

      Sir, I have exposure with the power industry. Meralco is a distributor but in the rate components it has been passing on to consumers, it has a generation charge component which is the subject of the news. So this one now deals with the charges, not the functions of the supply chain.

  • RicaKintana

    So it’s not actually a 100% increase in the cost of ” generating ” electricity. Its only around 98 – 99%. Siguro nga maraming yumayaman dito sa Pilipinas, kasi sa pagtaas na ganito, inaasahan ng Meralco na mabayaran ng lahat ng tao ang kuryente nila e. So, assuming the average household bill is around Php3000, basing it on the expected increase in the generation charge of Meralco, the next bill would amount to Php6000. People are already having a hard time making ends meet and this comes along ? Parang napakadali naman kumita ng pera. Ilang araw na namang di kakain ang pamilya ? Ilang gamot na naman ang hindi mabibili ? Madali sabihin ng Meralco na magtataas sila ng singil sa kuryente dahil alam nilang ” monopolized ” nila ang kuryente. Bakit hindi nila ginawan ng paraan na ipasa sa mga power producers ang dagdag singil ? Diba kasalanan din naman nilang nasira yung makinarya nilang panggawa ng elektrisidad ? O kaya, bakit hindi i-subsidize ng gobyerno ang kuryente ? Yaman lamang isa itong pangunahing pangangailangan. It’s supposed to be the government’s function to protect the people. Nasaan yung proteksyon na yan ngayon ? Kung tutuusin, noon pa man, alam na ng mamamayang Pilipino na ang gobyerno ni Noynoy ay walang pakialam sa karaniwang tao. Alam naman ng lahat na mas may halaga sa gobyernong ito ang pulitika kaysa sa mga taong namamatay sa Tacloban. So why should this be any different ? Mas pinapaboran parati ng gobyernong ito ang mga mayayaman at piling tao. Dahit si Noynoy ay isang mayaman at piling tao din.