Post by Forum Moderator / Kaskasero on Jul 31, 2008 17:01:59 GMT 8
Meralco rates are high – UP study
By : Efren L. Danao, Senior Reporter | Manila Times
31 July 2008 | 12:10 AM
A study by the University of the Philippines showed the Manila Electric Company (Meralco) was charging its customers nearly a peso more per kilowatt-hour, Sen. Miriam Defensor Santiago charged Wednesday.
Santiago, co-chairman of the Joint Congressional Power Commission (PowerCom) said the study showed Meralco’s high rates came about because of its contracts with independent power producers (IPPs) and its participation in the wholesale electricity spot market (WESM).
The PowerCom asked the UP researchers to determine the least cost of power supply from Meralco’s total system demand and to evaluate its performance in its power supply purchasing activities.
Credible UP study
The UP researchers were Professors Rowaldo del Mundo, Allan Nerves, Bienvenido Malquisto Jr., Ivan Benedict Cruz and Edna Espos. They used information submitted by Meralco, the National Power Commission, and the Energy Regulatory Commission as required by PowerCom to find out why the private utility’s power rates are high.
“I find the report reliable because the UP researchers first developed a computer-simulation model,” Santiago said.
She said the study rejected Meralco’s claim that the effective rates will become lower if it buys more from its independent producers, because of the transmission factor.
“To bring down power rates, Meralco should buy more from National Power Corp. and less from its IPPs. It should also minimize its participation in the WESM,” she said.
She said that if these two measures are taken, Meralco rates per kilowatt-hour would be lower by 98 centavos.
She explained that because Meralco participates in the wholesale spot market, it had to pass on to consumers 23 centavos more per kilowatt-hour.
By : Efren L. Danao, Senior Reporter | Manila Times
31 July 2008 | 12:10 AM
A study by the University of the Philippines showed the Manila Electric Company (Meralco) was charging its customers nearly a peso more per kilowatt-hour, Sen. Miriam Defensor Santiago charged Wednesday.
Santiago, co-chairman of the Joint Congressional Power Commission (PowerCom) said the study showed Meralco’s high rates came about because of its contracts with independent power producers (IPPs) and its participation in the wholesale electricity spot market (WESM).
The PowerCom asked the UP researchers to determine the least cost of power supply from Meralco’s total system demand and to evaluate its performance in its power supply purchasing activities.
Credible UP study
The UP researchers were Professors Rowaldo del Mundo, Allan Nerves, Bienvenido Malquisto Jr., Ivan Benedict Cruz and Edna Espos. They used information submitted by Meralco, the National Power Commission, and the Energy Regulatory Commission as required by PowerCom to find out why the private utility’s power rates are high.
“I find the report reliable because the UP researchers first developed a computer-simulation model,” Santiago said.
She said the study rejected Meralco’s claim that the effective rates will become lower if it buys more from its independent producers, because of the transmission factor.
“To bring down power rates, Meralco should buy more from National Power Corp. and less from its IPPs. It should also minimize its participation in the WESM,” she said.
She said that if these two measures are taken, Meralco rates per kilowatt-hour would be lower by 98 centavos.
She explained that because Meralco participates in the wholesale spot market, it had to pass on to consumers 23 centavos more per kilowatt-hour.