WESM power rates drop to all-time low

MANILA, Philippines – Despite increasing fuel costs, electricity rates at the Wholesale Electricity Spot Market (WESM) dropped at an all-time low, QTV’s Balitanghali reported Tuesday.

According to the report, power rates at WESM dropped to P1.80 per kilowatthour (kWh), around P2 lower than its rates in previous months when the rates were around P4 to P5.

The report quoted Lasse Holopainen, president of the Philippine Electric Market Corporation (PEMC), as saying that the power cut would lower the generation charge incurred by distributors like the Manila Electric Co. (Meralco).

In fact, this decline in WESM's power rates translate to a 30 to 40-centavo per kWh reduction in Meralco's electricity rates.

Holopainen said that the power rates at the WESM plummeted due to the recent drop in temperature in the country. He said that a colder weather prompts power consumers to use less electricity, thereby lowering the demand for power.

The PEMC president also said that the productivity of hydro-electric power plants shot up due to the occasional rain showers and series of typhoons that visited the country.

Aside from the generation charge, a consumer’s electricity bill is also dependent on other factors like system loss. The Meralco had earlier said that it has also incurred a lower system loss in June, which is also set to slash power rates further.

Meralco Vice President Elpi Cuna has said that the Meralco’s system loss charges will go down by as much as six centavos per kWh. - Mark Merueñas, GMANews.TV