Manila Electric Company (MERALCO) says that power generation charges are expected to decrease this month, which could be attributed to reduced demand and improved supply conditions.
In a report by Manila Standard, MERALCO vice president and spokesperson Joe Zaldarriaga mentioned that, although they haven’t received all the supplier billings, early indicators suggest a lower generation charge for this month, mainly due to decreased Wholesale Electricity Spot Market (WESM) prices driven by better supply.
Zaldarriaga also reported that July saw a reduction in average peak demand of 690 megawatts compared to June.
Preliminary data from the Independent Electricity Market Operator of the Philippines (IEMOP), which manages WESM, revealed that the system-wide average price dropped by 3% last month to Php 6.15 per kilowatt-hour (kWh) from Php 5.97 per kWh. The demand also decreased by 4.9% to 13,989 megawatts (MW) from 14,710 MW.
In Luzon, WESM prices fell by 0.9% to Php 5.92 per kWh from Php 5.97 per kWh, with demand easing by 4.9% to 10,142 MW from 10,664 MW. Average supply declined slightly by 3.8% to 13,340 MW from 13,380 MW.
Meralco had previously announced a rate increase of Php 2.1496 per kilowatt-hour in July due to higher generation charges.
The generation charges rose by Php 2.0021 per kWh as WESM charges returned to normal following the Energy Regulatory Commission’s (ERC) directive to stagger the collection of charges for the May supply month over four equal monthly installments until September 2024.
