Lower gas prices to temper power rates this month

MANILA, Philippines - Lower spot market and natural gas prices will temper the overall electricity rates for the month of June, the Manila Electric Co. said yesterday.

In a text message to reporters, Meralco spokesman Joe Zaldarriaga said the June generation charge, a pass-through component of electricity bills indicating the cost of generating power, is expected to be flat.

“Factors likely to drive the final figure are the lower average WESM (Wholesale Electricity Spot Market) price and indications of lower natural gas price for the May supply month,” he said.

Zaldarriaga said the steady generation charge is also attributed to the higher dispatch of capacity registered by a number of large power plants, but that there is no final rate yet since it still has to receive billings from generation companies.

“We will need to, however, wait for the actual bills from our suppliers,” he said.

The flat generation charge could temper the impending rate hike on transmission charges.

The Energy Regulatory Commission said the ancillary service charges, which will reflect a 6.5 centavo per kilowatt-hour increase in bills, will be implemented in the June bills.

Ancillary services are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice and the grid code.