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Power rates seen to drop in Feb

Customers may see a reduction in their power bills for February after the Manila Electric Co. (Meralco) hinted at lowering rates.

In a message to reporters on Thursday, Meralco spokesman Joe Zaldarriaga said “the initial data suggests that the generation costs for February have a very strong likelihood of a decrease due to higher demand in the Luzon grid in January, as compared to December.”

“With Luzon peak demand in January increasing compared to December 2020, this swing in demand means that the fixed costs from power suppliers may be spread over higher energy volume, resulting in lower effective rates to consumers, compared to last month,” he added.

The official also said Meralco was still waiting for the final billings from the various power suppliers, adding that the company aimed to announce rates early next month.

This came after the power distributor increased them by P0.2744 per kilowatt-hour (kWh), which translates to an additional P55 in the total bill of households consuming 200 kWh monthly.

Zaldarriaga’s remarks came as the Independent Electricity Market Operator of the Philippines Inc. (Iemop), which operates the Wholesale Electricity Spot Market, said power demand in Luzon and the Visayas were seen to pick up in the next few months.

In a virtual briefing, Iemop said it anticipated a demand growth rate of 5 percent between February and June, assuming that some power plants with a total capacity of 2,500 megawatts (MW) would be on outage.

We applied the 5 percent from last year’s peak demand of around 11,200 MW, so we expect peak demand to reach 11,847 MW in March, John Paul Grayda, Iemop manager for pricing validation and analysis, said in Taglish.

If the government decides to relax other quarantine protocols, electricity demand may increase. Historically, during summer months, energy requirements in Luzon and the Visayas are usually higher, he added.

Grayda however, said demand was not expected to peak the most at 12,611 MW until mid-2021.

Peak demand in the two island groups reached 12,611 MW in June, lower than the year-earlier’s 13,450 MW, according to Iemop data.


Source: ManilaTimes
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