Meralco foresees reduction in October generation charges

Meralco sees a reduction in its October generation charge following decreases in the generation cost of Independent Power Producers. According to the Manila Electric Company, the IPP rates dropped by US$0.0027 per kWh on the average with Quezon Power Philippines Ltd. registering the biggest reduction of US$0.0062 per kWh.

Both the Sta. Rita and San Lorenzo power plants likewise decreased by US$0.0021 and US$0.0015 per kWh, respectively. The reduction in IPP rates is largely due to the higher capacity factor for all three IPPs, resulting to lower fixed cost per kWh. For the supply month of September, the capacity factor for QPPL, Sta. Rita and San Lorenzo reached 96.7 per cent, 92.29 per cent and 96 per cent, respectively. Meralco has always emphasized that if the IPP plants reach higher dispatch levels, this will result in lower power rates charged by these plants.

Meralco said NPC rates are also expected to decline due to the reduction in its Fuel and Purchased Power Cost Adjustment and Foreign Exchange Adjustment rates for August 2010 as ordered by the Energy Regulatory Commission.

The generation charge, which is the electric bill’s biggest component, averages about 60 percent of the customer’s average monthly power bill.