(Business Mirror Written by Lenie Lectura / Reporter)
1. POWER retailer Manila Electric Co. (Meralco) customers should expect lower power rates and huge savings in their electricity bills this year.
2. Residential customers, the utility firm in a statement released on Tuesday said, will enjoy the benefit of lower rates arising from a reduction of an average of about 19 centavos per kilowatt-hour (kWh) for the year.
3. This, after the Energy Regulatory Commission (ERC) approved Meralco’s proposed rates under its new power- supply agreement (PSA).
4. “Meralco exerted extensive efforts to negotiate for these PSAs that would avert possible price shock in the light of the expiration of the company’s transition supply contract [TSC] with the National Power Corp. [Napocor] on December 26, 2012,†said Alfredo S. Panlilio, Meralco senior vice president for customer retail services and corporate communications, in a statement.
5. Suppliers which signed PSAs with Meralco include Sem-Calaca Power Corp., South Premiere Power Corp., San Miguel Energy Corp., Masinloc Power Partners Co. Ltd. and Therma Luzon Inc. The new PSAs are in accordance with Meralco’s mandate for least-cost supply.
6. The power utility said after extensive negotiations, it was able to forge new supply agreements with these power-generation companies, allowing it to replace its existing TSCs with Napocor.
7. Meanwhile, the ERC also approved Meralco’s application to implement its peak/off-peak (POP) program, formerly known as “time-of-use†system.
8. POP is an alternative energy pricing scheme that is based on the time of the day electricity is generated and on the cost of supplying electricity during that time. With this pricing scheme, customers can avail themselves of lower generation costs during pre-defined off-peak hours.
9. In its decision, the ERC said, “An initial evaluation of the instant application disclosed that Meralco’s proposed revised rates will address its social commitment to its customers, especially, its large industrial and commercial customers, by enticing them to invest in the country by way of just and reasonable costs of electricity. The program will help boost the country’s economic condition which will ultimately redound to the benefit of the consumers.â€
10. Eligible to enroll in Meralco’s POP are non-residential customers with at least 500 kW monthly average use. Customers availing themselves of POP rates are expected to experience savings of up to 10% on the average versus regular Meralco rates, depending on peak and off-peak consumption.
11. Panlilio said the timely approval of Meralco’s POP program will provide an alternative to a significant number of Meralco’s large corporate customers and the ecozone rate programs, which also expired (on) December 26, 2012. For old and new subscribers alike, implementation of the POP Program is set to begin on February 1, 2013.
12. “We, in Meralco, appreciate the approval made by ERC and are happy of this development for our customers.
13. “With the POP program, affordable electricity rate options continue to be available to customers, especially to our large customers who, through said program, can help contain cost of production and remain competitive in their area of business,†said Panlilio.
