| News and Events |
- PEMC initiates WESM Visayas Trial Operation Program
- PEMC enhances governance with updated roster of officers
- PEMC clarifies WESM impact on Meralco rates
- PEMC releases preliminary March market prices
- PEMC releases final January market prices
- PEMC supports Earth Hour 2010
- PEMC ready to run Electricity Reserve Market as soon as ERC gives go-ahead
- PEMC and NEA empower Electric Cooperatives
- PEMC holds WESM Participants’ Consultation Meeting on Independent Operational Audit
- DOE and PEMC finalize selection process for independent auditor
- 3rd WESM Annual Participants’ Meeting: Highlights in the last 12 Months of Operations
- PEM Board reconstituted to reflect equitable representation in preparation for IMO
- Former DOE Undersecretary Melinda L. Ocampo is new appointed PEMC Acting President
- Former DOE Undersecretary Melinda L. Ocampo is new appointed PEMC Acting President
- PEM Board approves Consumer Education Fund Availment Guidelines
| News Archives |
PEMC clarifies WESM impact on Meralco rates
The Philippine Electricity Market Corporation (PEMC) said in a statement that while there may have been an increase in prices at the Wholesale Electricity Spot Market (WESM), there was also a corresponding increase in generation charges from Meralco’s contracted Independent Power Producers (IPP).
The increase in the generation cost which will be reflected in the electric bills of Manila consumers is due to the shutdown of the Malampaya platform and pipelines which forced their contracted IPPs to utilize more expensive alternative fuel resulting in higher prices of energy procured from natural gas-fired plants.
Based on Meralco information published in their website (http://www.meralco.com.ph/Corporate/rates/gentrans.htm), the generation rate impact of the increased WESM prices from February to March 2010 is about P1.98/kWh or 21% compared to the previous billing month. When combined with NPC-supplied energy, the bottomline impact is about P0.85/kWh or 13% increase. Comparatively, the bottomline generation rate impact of Meralco contracted IPPs is about P1.00/kWh or 21%. This shows that in addition to the impact of the WESM prices, the increase in the prices of their contracted IPPs also contributed to their higher generation cost. During this period, Meralco withdrew about seventeen percent (17%) of Meralco’s demand requirements. This follows that the effect of WESM prices was limited to less than a quarter of of Meralco’s total energy requirement.
As stated in Section 23 of the EPIRA, “a distribution utility shall have the obligation to supply electricity in the least cost manner to its captive market, subject to the collection of retail rate duly approved by the ERC.” A major part of this responsibility calls for proper planning in the procurement of power in “the least cost manner” which is the implementation of measures to address demand requirements in an ideal or an emergency situation.
PEMC has always practiced transparency in all aspects of its operations, including dispatch and pricing using the principle of merit order as duly approved by the Energy Regulatory Commission (ERC). PEMC complies with all relevant laws and regulations in performing its mandate of providing a venue for a competitive electricity market.