Sexy Statistics

 

What Drives Electricity Rates

 

What Drives Electricity Rates
to Go Up, Up and Away?


by Jose Ramon G. Albert, Ph.D  1     Filipino version
Posted:27 September 2013

 


They say you can't live without love, but nowadays, electricity can be just as important.

Electricity has become a prime mover of almost every economic and social activity. It is hard to imagine living today in the twenty first century without it. That is why we frown every time there is news about an increase in the power bill.

Last month, we came up with an online article about the prices of food. Now we are going to tackle a commodity that is more complex, in terms of pricing—electricity. We will explore where our electricity tariffs go and how our rates compare with our neighbours in Southeast Asia. We will also look at the price movements of the different segments of the electricity bill in the last few years.

What do we actually pay for?

Whenever we look at the electricity bill, we tend to ignore the different items which make up the sum of what we pay for. In effect, when there is a sharp increase in the total power tariff, we often blame the company from which the bill came from, the distribution utility. Power distributors like the Manila Electric Co. (Meralco), Visayan Electric Co. (Veco), and Davao Light take the hit from consumers whenever there are abrupt increases in the cost of electricity. However, most price movements are actually outside the control of the power distributors and are merely pass-through charges from other segments of the power industry. It just so happens that it is the job of the distribution utility to deliver the power from producers to the consumers so they are the ones handing us the bill.

The electricity industry is not a single, vertically-aligned system where there is only one producer of the good. The Philippine power sector can actually be broken down into three major segments: (a) generation, (b) transmission, and (c) distribution, supply and metering. Table 1 shows the schedule rates for the month of September of the country's largest power distributor, Meralco. Meanwhile, Table 2 shows the total power cost for the typical consumer segments.

Distribution, supply and metering (distribution) is the segment of the electricity industry in which most people are more familiar with. These are the companies like Meralco, Veco, and the electric cooperatives in the provinces. It is the segment of the industry which delivers power from the producers to the households, commercial establishments, and industries.  Essentially, the job of electricity distributors is similar to the job of retail traders. They buy the goods (in this case, electricity) from the different sources, then sell them to the consumers. The tariff which goes to distribution companies accounts for 16.0 percent of the total power bill (Table 3 and Figure 1). The rate of distribution varies across customer segments. It is generally progressive, which means that as you increase your power consumption, the amount you pay per kilowatt hour also increases.  The words electricity tariffs, electricity rates, and electricity bill will be used interchangeably in this article.

Generation is the segment of the electricity industry which produces power from sources like coal, diesel, natural gas, hydro and geothermal. Generation makes up the biggest component of our electricity tariff. Roughly 65.0 percent (Table 3 and Figure 1) of what customers pay for goes to this segment. This means that for every one peso you spend on your power bill, about 65 cents goes to the power generators. The amount you pay for this component goes to the various generation companies who own power plants. Unlike the distribution charge which is progressive, all customer segments pay the same amount for generation.

The transmission segment is the bridge between the power generators and the distribution utilities. It is the superhighway in which electricity travels through: from the power plants in the provinces to the cities, where the demand is high. Transmission makes up 8.7 percent of the power bill.

On top of charges we pay for the actual production and delivery of electricity, we are also charged for other things in the total electricity tariffs. A 10.0 percent value added tax is imposed on electricity generation. Consumers also shoulder the universal charge, a uniform rate (P0.31 per kwh) in the power bill which funds the government's missionary electrification program and environmental protection.

Distribution utilities offer discounts to certain factions of society. The law requires distribution utilities to implement a lifeline discount; it is a reduction on the distribution cost enjoyed by the lower consumer segments. Customers who consume between one to 20 kilowatt hours per month can enjoy a 100.0 percent discount in the distribution rate (Table 1). As consumption goes up, the discount eases. Customers consuming 71.0 to 100.0 kilowatt hours per month can enjoy a discount of 20.0 percent. These subsidies are shouldered by customers with higher power consumption. Senior citizens are also given discounts on power. Anyone above 60 years old is entitled to a 5.0 percent discount on their electricity bill.

The electricity basket

The generation rate appears as a uniformed component in the schedule of rates. The generation charge which you see in the electricity bill is actually a blended rate, which means it is the weighted average of the price from the various power producers where the electricity was sourced. Different sources sell the power they produce at different rates.

The United States’ Energy Information Agency (EIA) provides a benchmark on the cost of generation per fuel type (Table 4 and Table 5). Even though the actual price levels may be different, resulting from the differences in the scale and technology of the power facilities operating there and here, the figures they provide can still be used as a guide to compare the generation cost of the different power sources.

Data from the EIA show that based on the projected power cost of facilities entering by 2018, the cheapest is wind at P3.72 per kilowatt hour. Following wind is geothermal, at P3.85 per kilowatt hour. Power sourced from hydroelectric facilities cost P3.88 per kilowatt hour. Although the cost of energy generated from wind and hydro are the lowest, they also have the lowest capacity factor. This means that their availability to generate power is also less (Table 4 and Table 5). 

Among the fossil fuel-based sources, conventional combined cycle (Natural Gas) produce the cheapest power, at P2.89 per kilowatt hour while conventional coal-produced power is P4.30 per kilowatt hour. Solar thermal, off-shore wind, and photovoltaic solar produce the most expensive electricity at P11.24 per kilowatt hour, P9.52 per kilowatt hour, and P6.20 per kilowatt hour, respectively (Table 4 and Table 5). The price of power from diesel-fed power plants is reported to produce power at P13.00 to P20.00 per kilowatt hour.

Each power source has its characteristics. The cheaper ones like wind and hydro tend to be intermittent and unreliable. Wind mills can only produce power when the winds are blowing strong. Hydroelectric power plants operate at limited capacity during the dry seasons. The price of power from coal, gas, and diesel are more reliable in terms of delivery but they are dependent on supply availability and are vulnerable to shocks in world market prices. That is why it is imperative for power distributors to maintain a diverse portfolio of power supply contract with different sources.

Data from the Department of Energy (DOE) show that in 2012 (Table 6), 38.8 percent of the total power generated in the country is produced by coal-fired power plants. Natural Gas power plants, meanwhile, account for 26.9 percent of the energy mix. Geothermal and hydro both account for 14.0 percent of the country's total energy production.

So what is driving power rates?

Generation.  Distribution utilities are generally free to choose their suppliers. In theory, they would opt to blend the optimal mix of energy sources, which will minimize the cost of electricity for the consumers. For Meralco, which supplies power to 75.0 percent of the power in Luzon and 55.0 percent of the whole country, most of the electricity it delivers are tapped from state-owned National Power Corp. (Napocor), the Whole Sale Electricity Spot Market (WESM), and three independent power producers (IPPS), namely the Quezon Power (coal) and the natural gas-fired powers plants, Santa Rita and San Lorenzo.

The Napocor is controlled and managed by the government; the electricity produced by the power plants under its wing is sold at a regulated rate. The rates are adjusted every quarter to reflect changes in fuel cost and the foreign exchange rate. The WESM, meanwhile, is a trading platform for power generators and buyers of electricity such as distribution utilities. Prices in WESM are dictated by market forces in contrast to set prices under power supply agreements between generation companies and utilities. Power distributors are mandated by law to source at least 10.0 percent of their power requirements from the WESM.

Data from 2007 to 2012 (Table 7, Figure 2) show a lot of volatility in the price of generation, but there is no evidence to show that there is a trend, either upward or downward, being taken by the generation charge since 2007. WESM price, which is more reflective of real market conditions in the electricity, appears to be the most volatile. The lowest price it hit was P1.80 per kilowatt hour while the highest price it hit was P20.70 per kilowatt hour. Price of power from the WESM tends to be sensitive to supply shocks and seasonal factors. For example, WESM prices peaked during the El Nino dry spell when cheap power from hydroelectric power plants was not available to ease price levels. The blended rate moves more closely with the price with the price of power from Napocor and the independent power producers.

Transmission. The National Grid Corporation of the Philippines, the private corporation operating the country's transmission system, is allowed to change their transmission rates monthly but the maximum price which they can bill their customers is regulated by the Energy Regulatory Commission (ERC). Data from 1998 to 2012 (Table 8, Figure 3) show that there appears no upward or downward trend in being followed by the price of transmission.

Distribution. Similar to the transmission rate, the distribution rate is also regulated by the state through the ERC. Most major distribution utilities (not all) are allowed to adjust their rates based on projected capital expenditure through performance-based rate (PBR) setting mechanism. Data from 2006 to 2012 show there is generally no trend in the movement of distribution price across the time period. The price of distribution, however, is slightly higher in 2012 as compared to 2006 (P0.50 per kilowatt hour on the average) as a result of the PBR adjustments from the series 2008 to 2012 (Table 9, Figure 4).

Changes in the price of distribution and transmission have minimal impact on the power bill. The price of generation, on the other hand, accounts for a greater chunk of what the consumers pay for. The generation rate also tends to be more volatile than the price of transmission and distribution because the two are regulated and the generation is not. The increases we see in the power bill and hear from the news is brought mostly about by changes in the generation charge. Supply and demand situations play a large role. When cheap source of electricity like hydro is unavailable, especially during the dry season, power tariffs tend to be high. We also tend to use more expensive sources of power when demand is high. To add to that, the price of fuel (Table 5 and Table 6), such as coal and diesel, accounts for half of the generation price. A sharp jump in the world market price for coal would have a substantial impact on the price of power.

How do we compare with our neighbours?

Filipinos pay one of the highest electricity rates in the region. Data from Asean Center for Energy show that among the ten countries Southeast Asia in 2007, the country's  ranks as having the third highest residential electricity tariffs, fifth highest for commercial, and fourth highest in terms of industrial electricity tariffs (Table 10).

A study conducted by the Perth-based consultancy firm, International Energy Consultants (IEC), placed the rates in Luzon as having the ninth highest electricity tariffs of the 44 countries surveyed. Meralco commissioned the IEC to conduct the study.

According to the IEC study, one of the main reasons why the country's power rates are higher compared to other countries is the absence of government subsidies for electricity, unlike countries like Indonesia, Thailand, and Malaysia, where electricity rates are subsidized by the government. These subsidies eat up a large chunk of public budget. In Indonesia, for example, energy subsidies accounts for 24.0 percent of the 2013 public expenditure plan.

A way out

The Electric Power Industry Reform Act (Epira) provides for retail competition and open access. This scheme took effect in June 2013. In the regime of open access, large power consumers, like manufacturing facilities and big malls, can freely choose their electricity supplier. The power users will not be forced to buy supply from distribution utilities and they can now choose which supplier can provide them the electricity that will be cheaper for their operations. The rationale for open access is that competition among electricity supplier will put a downward pressure on electricity price and ultimately lead to cheaper power in the long run.

_______________________

Reactions and views are welcome thru email to the author at jrg.albert@nscb.gov.ph

 

 

Filipino Version

 

Ano nga bang dahilan ng patuloy na pagtaas
sa singil ng kuryente

Ni Jose Ramon G. Albert, Ph.D.1

 

Sabi nila, di ka mabubuhay nang walang pag-ibig. Subalit sa panahong ito, tulad ng pag-ibig, di ka rin mabubuhay nang walang kuryente. Ang kuryente ang pangunahing kailangan sa mga gawaing pangkalakalan at panlipunan. Mahirap mabuhay sa makabagong panahon kung walang kuryente. Kaya naman, sa bawat balitang pagtaas sa presyo nito,  hindi rin natin maiwasan ang sumimangot at sumama ang pakiramdam sa bawat pagtaas sa presyo ng kuryente.

Noong isang buwan, sa ating online article, nagkaroon tayo ng usapin ukol sa presyo ng pagkain. Ngayon, balikan natin ang usapin sa mas komplikadong isyu kung presyo ang pag-uusapan - ang kuryente. Saan nga ba napupunta ang taripa sa kuryente? At paano natin maikukumpara ang presyo ng ating kuryente sa ating mga kalapit bansa sa Southeast Asia? Ito ang paksa ng ating usapan ngayon. Susuriin natin ang takbo ng presyo ng ibat- ibang items ng ating electric bill sa mga nakalipas na taon.


Ano nga ba ang ating mga binabayaran?

Sa tuwing babasahin natin ang ating mga electric bill, di natin napapansin ang ibat-ibang items na bumubuo sa halaga ng ating pinagbabayaran. Kaya naman, sa tuwing may malaking pagtaas sa pangkahalatang taripa sa kuryente, kalimitang sinisisi natin ang mga power distribution utilities.  Ang mga power distributors tulad ng Meralco, Visayan Electric Co (Veco) at Davao Light ang tumatanggap ng pagbatikos mula sa mga consumers sa tuwing may biglaang pagtaas sa presyo ng kuryente. Ang totoo, wala ito sa control ng mga power distributors , at naipapasa lamang sa iba pang sector ng power industry. Naging trabaho lang ng mga mga distribution utilities na i-deliver ang kuryente mula sa mga producers patungo sa mga consumers kaya sila ang naninigil sa publiko.

Ang power sector industry ay hindi hawak ng nag-iisang producer ng kuryente. Ito ay binubuo ng tatlong pangunahing bahagi o components: (a) generation, (b) transmission, at (c) distribution, supply and metering. Makikita sa Table 1 ang schedule rates para sa buwan ng Setyembre ng Meralco, ang pinakamalaking power distributor. Samantalang sa Table 2, makikita naman ang total power cost para sa mga pangkaraniwang consumer segment.

Ang distribution, supply and metering (distribution) ang isang bahagi ng electricity industry na mas pamilyar sa mga tao. Halimbawa nito ay ang Meralco, Veco at iba pang mga electric cooperative sa mga lalawigan. Sila ang mga players ng industriya na syang nagdadala ng kuryente mula sa mga producers nito patungo sa mga bahay, establishments, at iba pang industriyang gumagamit ng kuryente.

Ang gawain ng mga electricity distributors ay tulad din ng mga retail traders. Sila ang bumibili ng produkto (kuryente) mula sa ibat ibang sources at ibenebenta sa mga consumers.  Ang taripang napupunta sa mga distribution companies ay umaabot lamang sa 16.0% ng total power bill (Table 3 and Figure 1). Ang halaga ng distribution ay iba-iba sa bawat uri ng customer. Kalimitan, ito ay tumataas, kung saan sa bawat pagtaas sa dami ng ginagamit na kuryente ay nangangahulugan din ng pagtaas sa bawat kilowatt hour nito. Sa artikulong ito ay pwede nating maihalintulad at ipagpalit sa isat isa ang mga salitang, electricity tariffs, electricity rates, at electricity bill

Ang generation ay ang bahagi ng electricity industry na syang nagpro-produce ng kuryente mula sa ibat ibang sources tulad ng coal, diesel, natural gas, hydro at geothermal. Ito ang bumubuo ng pinakamalaking bahagi ng ating electricity tariff. Humigit kumulang sa 65.0% (Table 3 and Figure 1) na ibinabayad ng mga consumers ang napupunta sa generation component ng electric bill. Nangangahulugan, na sa bawat piso na ginastos mo sa yong power bill, 65% nito ay napupunta sa generation companies na syang may-ari ng mga power plants. Hindi tulad ng distribution charge na tumataas depende sa konsumo, sa generation charge, ang lahat ng customers ay nagbabayad ng pare-parehong halaga.

Ang transmission segment ay ang tulay sa pagitan ng mga power generators at distribution utilities. Ito ang parang super highway kung saan naglalakbay ang kuryente mula sa power plants sa mga lalawigan patungo sa mga siudad kung saan mas mataas ang pangangailangan sa kuryente. Ang transmission ang bumubuo sa 8.7%  ng power bill.

Maliban sa singil na ating binabayaran para sa actual production at delivery ng kuryente, sinisingil din tayo ng iba pang bayarin sa ating total electricity tariff. Mga 10.0% ang value added tax na ipinapataw sa generation ng kuryente. Sa mga consumer din sinisingil ang universal charge sa kaparehong halaga (P0.31 per kwh)  sa power bill kung saan syang ginagamit na pondo para sa missionary electrification program at environmental protection program ng pamahalaan.

Sa kabila nito, nagbibigay ang mga distribution utilities ng bawas na bayad o discount sa ilang sektor ng lipunan. Sinasabi sa batas na kinakailangang magpatupad ang mga distribution utilities ng lifeline discount, ito ang pagbawas sa distribution cost na pinakikinabangan ng mga consumers na nasa mababang antas. Ang mga customers na kumukonsumo sa pagitan ng isa hanggang 20 kilowatt hour kada buwan ay maaring magkaroon ng 100% discount sa distribution rate (Table 1). Kapag tumataas ang konsumo, bumababa naman ang maaring matanggap na discount.  Ang mga customers na gumagamit ng 71 hanggang 100 kilowatt hour kada buwan ay maaaring tumanggp ng 20% discount. Ang mga subsidies na ito ay ipinapatong sa mga customers na kumukonsumo ng mataas na kuryente. Ang mga senior citizen ay binibigyan din ng discount sa kuryente. Ang sinumang may edad 60 pataas ay pwedeng tumanggap ng 5.0% discount sa singil ng kuryente.

Ang  electricity basket

Ang generation rate ay tila isang uniformed component sa schedule of rates. Ang generation charge na makikita sa electricity bill ay isang blended rate na ang ibig sabihin, ito ay binubuo ng weighted average ng presyo mula sa ibat ibang power producers na pinanggalingan ng kuryente. Ibenebenta ng ibat ibang power sources ang kanilang kuryente sa ibat ibang halaga.

Naglaan ang United States’ Energy Information Agency (EIA) ng benchmark sa halaga ng uri ng gasolina (Table 4 and Table 5). Bagamat naiiba ang totoong price level nito, na resulta ng pagkakaiba sa scale at technology ng mga power facilities, maari pa ding magamit ang halagang kanilang  ibinigay bilang guide upang ikumpara ang generation cost ng ibat ibang power sources.

Makikita sa datos ng EIA, ayon sa projected power cost of facilities na papasok sa 2018, ang pinaka mababang halaga ay mula sa kuryenteng mula sa hangin (wind), P3.72 per kilowatt hour. Sumunod sa wind ay geothermal, P3.85 per kilowatt hour. Ang hydroelectric facilities ay nagkakahalaga ng P3.88 per kilowatt hour. Bagamat ang halaga ng kuryente na nagmumula sa hangin at hydro ang pinakamababa, sila rin ang may pinakamababang capacity factor. Ibig sabihin, mas mababa rin ang pagkakataon na makakuha rito ng kuryente. (Table 4 and Table 5)

Sa hanay ng mga fossil based sources of electricity, ang natural gas ang nakapagproduce ng pinakamababang halaga ng kuryente sa P2.89 per kilowatt hour samantalang ang conventional coal produced power ay P4.30 per kilowatt hour. Ang pinaka mahal na kuryente ay nagmumula sa solar thermal, off shore wind at photovoltaic solar sa halagang P11.24,  P9.52, at  P6.20 per kilowatt hour, ayon sa pagkasunod-sunod. Ang kuryente mula diesel-fed power plants ay iniulat na mabibili sa halagang P13.00 hanggang P20.00 per kilowatt hour (Table 4 and Table 5).

Ang bawat power source o pinagkukunan ng kuryente ay may kanya kanyang characteristics. Ang murang kuryente mula sa hangin at hydro ay hindi maasahan at paputol-putol. Ang wind mills ay kaya lamang makagawa ng kuryente kung malakas ang ihip ng hangin. Ang hydro electric power plants ay nag-ooperate lamang nang may limitasyon sa panahon ng tagtuyo. Ang presyo ng kuryente mula sa coal, gas at diesel ay mas maasahan kung delivery ang pag-uusapan subalit sila ay naka-asa naman sa availability ng supply at nakadepende sa takbo ng pandaigdigang pamilihan. Kaya nararapat lamang para sa mga power distributors na magpanatili ng isang malawak na listahan ng mga ka- kontratang power suppliers mula sa ibat ibang sources.

Makikita sa datos ng Department of Energy (DOE) na noong 2012, (Table 6) 38.8% ng  pangkahalatang kuryenteng nakukuha ng bansa ay nagmumula sa mga coal-fired power plants. Samantalang ang Natural Gas power plants, ay nakakakuha lamang ng 26.9 %  ng pinagsama-samang enerhiya. Ang Geothermal at hydro ay may ambag lamang na 14% sa pangkahalatang energy production ng bansa.

Kung ganoon, ano nga bang mga dahilan sa pagtaas ng singil sa kuryente?

Generation.  Ang mga distribution utilities ay may kalayaang pumili ng kanilang mga suppliers. Sa theory, maari nilang paghaluin ang ibat ibang pinagkukunan ng kuryente upang mabawasan ang halaga ng kuryente na sinisingil sa mga consumers. Sa kaso ng Meralco, (na syang nag su-supply ng 75.0% ng kuryente sa Luzon at 55.0% sa buong bansa)  karamihan ng kuryente nito ay nagmumula sa National Power Corp. (Napocor), Whole Sale Electricity Spot Market (WESM), at sa tatlong independent power producers (IPPS), tulad ng  Quezon Power (coal) at Santa Rita and San Lorenzo( na kapwa natural gas-fired powers plants).

Ang Napocor ay isang kontraladong kumpanya at pag-aari ng gobyerno; ang kuryenteng nagmumula sa mga power plants nito ay ibenebenta sa halagang itinatakda. Ang presyo ay pinapalitan tuwing ika tatlong buwan upang isama ang mga pagbabago sa presyo ng gasoline at palitan ng dolyar. Samantala, ang WESM ay isang trading platform para sa mga power generators at mamimili ng kuryente tulad ng mga distribution utilities. Ang presyo ng WESM ay dikta ng pwersa ng pamilihan na kabaligtaran sa itinakdang presyo sa ilalim ng power supply agreement sa pagitan ng mga generation companies at utilities. Itinatakda ng batas sa mga power distributors na kumuha ng 10.0% ng kanilang power requirement mula sa WESM.

Makikita sa mga datos mula 2007-2012 (Table 7, Figure 2) ang paiba-ibang presyo ng power generation, subalit walang ebidensya na mayroong namumuong trend, pataas man o pababa dulot ng generation charge simula 2007. Ang lumalabas na mas pabago bago ang presyo ay ang sa WESM, kung saan mas namamalas ang tunay na kondisyon ng pamilihan sa kuryente. Ang pinakamabaang presyong naitala ay P1.8 per kilowatt hour samantalang ang pinakamataas ay P20.7 per kilowatt hour. Ang presyo ng kuryente ng WESM ay mas sensitibo rin sa supply shock at seasonal factors. Bilang halimbawa, mas mahal ang presyo ng WESM noong panahon ng El Niño dry spell kung saan ang mas muraang kuryente mula sa hydroelectric power plants ay hindi available upang mabalanse ang prices level ng kuryente. Ang pinaghalong presyo ay kumikilos ng mas malapit sa presyo ng Napocor at ng mga independent power producers.

Transmission. Ang National Grid Corporation of the Philippines, isang pribadong kumpanya na nagpapatakbo sa transmission system ng bansa ay pinapayagan na magpalit ng singil kada buwan hanggang sa pinakamataas subalit ayon sa regulasyon ng Energy Regulatory Commission (ERC). Ayon sa datos mula 1998 - 2012 (Table 8, Figure 3) mapapansin  ang pabago-bagong transmission rate subalit hindi naman kinakitaan ng pag-akyat o pagbaba ng trend.

Distribution. Kahalintulad ng transmission rate, ang distribution rate ay nasa ilalim din ng regulasyon ng ERC. Karamihan (hindi lahat) sa mga distribution utilities ay pinapayagan mag adjust kanilang singil ayon sa projected capital expenditure sa pamamagitan ng itinatakdang performance –based rate (PBR) mechanism. Makikita sa mga datos noong 2006-2012 na walang trend movement sa distribution ng singil sa kuryente sa loob ng nabanggit na panahon. Subalit, mas mataas ng konti noong 2012 ang price distribution kumpara noong 2006 (P0.50 per kilowatt hour on the average). Ito ay bunsod ng ginawang adjustment sa PBR mula 2008 to 2012 (Table 9, Figure 4).

Ang pagbabago sa price distribution at transmission  ay mayroong konting epekto sa singil sa kuryente. Sa kabilang dako, sa presyo ng generation napupunta ang  malaking bahagi ng bayad ng mga consumers. Mas pabago bago rin takbo ng generation rate kumpara sa dalawang pang component (transmission at distribution). Ang mga balitang pagtaas sa presyo ng kuryente ay kalimitang bunsod ng pagbabago sa generation charge. Malaki rin ang papel ng supply at demand sa kuryente. Kapag hindi available ang murang kuryente mula sa hydro lalo na sa panahon ng tagtuyot, mas mataas ang singil ng kuryente. Kapag mataas din ang demand, mas lalong nagagamit natin ang mas mahal na pinagkukunan ng kuryente.  Dagdag pa rito, ang presyo ng gasolina  (Table 5 and Table 6), tulad ng coal at diesel ang sya ring pinagkukunan ng kalahati ng generation price. A biglaang pag-akyat ng presyo ng coal sa world market ay may malaking epekto rin sa singil ng kuryente.

Ano ang lagay natin kumpara sa ating mga kalapit na bansa

Sa rehiyon ng Southeast Asia, ang mga Pilipino syang nagbabayad ng isa sa pinakamataas na singil sa kuryente. Makikita sa datos ng Asean Center for Energy na sa sampung bansa sa Southeast Asia noong 2007, ang Pilipinas ang pangatlo para residential houses, panglima para sa commercial at pang apat sa industrial na may pinakamataas na singil sa kuryente (Table 10).

Sa isang pag-aaral na isinagawa ng International Energy Consultants (IEC), sinasabi na ang Luzon ang pang siyam na may pinakamataas na singil sa kuryente sa may 44 na bansa na sinurvey. Ang Meralco ang nagpa surbey sa IEC.

Ayon sa resulta ng pag-aral ng IEC, isa sa mga dahilan ng kung bakit mataas ang singil sa kuryente sa Pilipinas, kumpara sa iba pang bansa ay dahil sa kawalan ng subsidiya ng pamahalaan hindi katulad ng mga bansang Indonesia, Thailand at Malaysia kung saan  may subsidiya ang gobyerno sa kuryente. Ang mga subsidiyang ito sa kabilang dako, ay kumakain ng malaking bahagi ng budget ng pamahalaan. Bilang halimbawa, sa Indonesia, ang subsidiya sa enerhiya ay umaabot sa 24.0% ng kanilang 2013 public expenditure plan.

Ano ang solusyon?

Ang Electric Power Industry Reform Act (Epira) ay isinabatas para sa retail competition at open access. Ang mekanismong ito ay ipinatupad noong June 2013. Sa open access, ang naglalakihang power consumers tulad ng nasa sector ng manufacturing at malalaking shopping malls ay malayang makapipili ng kanilang supply ng kuryente. Ang mga gumagamit ng kuryente ay napipilitang bumili ng supply mula sa mga distribution utilities at pwede rin silang pumili kung alin ang mas mura para kanilang operasyon. Ang dahilan ng open access ay upang magkaroon ng competition sa pagitan ng mga electric suppliers at kinalaunan ay mapilitan silang ibaba ang singil sa kuryente.  

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Kung kayo ay may reaksyon o ibang pananaw ukol sa artikulong ito, mangyari lamang na sumulat sa may akda sa email address na:jrg.albert@nscb.gov.ph.

1 Secretary General of the National Statistical Coordination Board (NSCB). The NSCB, a statistical agency functionally attached to the National Economic and Development Authority (NEDA), is the highest policy making and coordinating body on statistical matters in the Philippines. Immediately prior to his appointment at NSCB, Dr. Albert was a Senior Research Fellow at the Philippine Institute for Development Studies, a policy think tank attached to NEDA. Dr. Albert finished summa cum laude with a Bachelor of Science degree in Applied Mathematics from the De La Salle University in 1988. He completed a Master of Science in Statistics from the State University of New York at Stony Brook in 1989 and a Ph.D. in Statistics from the same university in 1993. He is a Professorial Lecturer at the Decision Sciences and Innovation Department of Ramon V. Del Rosario College of Business, De La Salle University. He is also a past President of the Philippine Statistical Association, a Fellow of the Social Weather Stations, and an Elected Regular Member of the National Research Council of the Philippines.

This article was co-written by Maria Fe M. Talento and John Lourenze Poquiz, Division Chief and Statistical Coordination Officer III, respectively of the Economic Statistics Office, NSCB. The authors thank Director Raymundo J. Talento and Simonette Nisperos for the assistance in the preparation of the article. This article was translated in Filipino by Ruben V. Litan.

 

Table 1: Meralco's schedule of rates for the month of September 2013

SUMMARY SCHEDULE OF RATES* EFFECTIVE SEPTEMBER 2013 BILLING Generation
Charge1
Prev. Mos' Adj
on Gen Cost2
3
Transmission Charge
4
Distribution Charge
4
Supply Charge
4
Metering Charge
per kWh per kWh per kWh per kW per kWh per kW per kWh per cust/mo per kWh per cust/mo
Residential
0 TO 20 KWH 5.1747 0.0314 0.8671   1.2225   0.6043 19.88 0.4066 5
21 TO 50 KWH 5.1747 0.0314 0.8671   1.2225   0.6043 19.88 0.4066 5
51 TO 70 KWH 5.1747 0.0314 0.8671   1.2225   0.6043 19.88 0.4066 5
71 TO 100 KWH 5.1747 0.0314 0.8671   1.2225   0.6043 19.88 0.4066 5
101 TO 200 KWH 5.1747 0.0314 0.8671   1.2225   0.6043 19.88 0.4066 5
201 TO 300 KWH 5.1747 0.0314 0.8671   1.5798   0.6043 19.88 0.4066 5
301 TO 400 KWH 5.1747 0.0314 0.8671   1.917   0.6043 19.88 0.4066 5
OVER 400 KWH 5.1747 0.0314 0.8671   2.5043   0.6043 19.88 0.4066 5
General Service A
0 TO 200 KWH 5.1747 0.0314 0.8671   1.2225   0.6043 19.88 0.4066 5
201 TO 300 KWH 5.1747 0.0314 0.8671   1.5798   0.6043 19.88 0.4066 5
301 TO 400 KWH 5.1747 0.0314 0.8671   1.917   0.6043 19.88 0.4066 5
OVER 400 KWH 5.1747 0.0314 0.8671   2.5043   0.6043 19.88 0.4066 5
General Service B 5.1747 0.0314   267.22 0.1625 281.84   441.49   430.62
General Power (GP) Secondary
MEDIUM SECONDARY 5.1747 0.0314   300.46 0.1625 281.84   1,004.45   1,009.53
LARGE SECONDARY 5.1747 0.0314   300.46 0.1625 281.84   4,166.09   4,189.45
GP 13.8 KV and below                    
MEDIUM 13.8 KV AND BELOW 5.1747 0.0314   337.73 0.0609 217.08   1,004.45   1,009.53
LARGE 13.8 KV AND BELOW 5.1747 0.0314   337.73 0.0609 217.08   4,166.09   4,189.45
VERY LARGE 13.8 KV AND BELOW 5.1747 0.0314   337.73 0.0609 217.08   15,124.68   14,350.77
GP 34.5 KV
MEDIUM 34.5 KV 5.1747 0.0314   353.01 0.0609 217.08   1,004.45   1,009.53
LARGE 34.5 KV 5.1747 0.0314   353.01 0.0609 217.08   4,166.09   4,189.45
VERY LARGE AND EXTRA LARGE 34.5 KV 5.1747 0.0314   353.01 0.0609 217.08   15,124.68   14,350.77
GP 115 KV / 69 KV 5.1747 0.0314   270.15 0.0609 170.08   15,124.68   14,350.77
GHMSCI 5.1747 0.0314 0.9968   1.0301     331.09   330.93
FLAT STREETLIGHTS
Per kWh 5.1747 0.0314 0.876   2.3867   0.7719      
Per Lamp
125 W Mercury, 70 W HPS(or equivalent) 217.34 1.32 36.79   100.24   32.42      
250 W Mercury, 150 W HPS(or equivalent) 346.7 2.1 58.69   159.91   51.72      
400 W Mercury, 250 W HPS(or equivalent) 579.57 3.52 98.11   267.31   86.45      
400 W HPS (or equivalent) 900.4 5.46 152.42   415.29   134.31      

 

SUMMARY SCHEDULE OF RATES* EFFECTIVE SEPTEMBER 2013 BILLING System Loss
Charge5
Universal Charge Lifeline Rate
Subsidy8
Senior Citizen
Subsidy9
Lifeline
Discount10
Special
Discount11
12
UC-ME6 UC-EC UC-SCC7
per kWh per kWh per kWh per kWh per kWh per kWh % % Penalty Disc
Residential
0 TO 20 KWH 0.5437 0.1163 0.0025 0.1938     100.00%      
21 TO 50 KWH 0.5437 0.1163 0.0025 0.1938     50.00%      
51 TO 70 KWH 0.5437 0.1163 0.0025 0.1938     35.00%      
71 TO 100 KWH 0.5437 0.1163 0.0025 0.1938     20.00%      
101 TO 200 KWH 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001        
201 TO 300 KWH 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001        
301 TO 400 KWH 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001        
OVER 400 KWH 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001        
General Service A
0 TO 200 KWH 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001   5%    
201 TO 300 KWH 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001   5%    
301 TO 400 KWH 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001   5%    
OVER 400 KWH 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001   5%    
General Service B 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001   3%    
General Power (GP) Secondary
MEDIUM SECONDARY 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001   3% 1.4% 0.7%
LARGE SECONDARY 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001   3% 1.4% 0.7%
GP 13.8 KV and below                    
MEDIUM 13.8 KV AND BELOW 0.2198 0.1163 0.0025 0.1938 0.1091 0.0001   3% 1.4% 0.7%
LARGE 13.8 KV AND BELOW 0.2198 0.1163 0.0025 0.1938 0.1091 0.0001   3% 1.4% 0.7%
VERY LARGE 13.8 KV AND BELOW 0.2198 0.1163 0.0025 0.1938 0.1091 0.0001   3% 1.4% 0.7%
GP 34.5 KV
MEDIUM 34.5 KV 0.2198 0.1163 0.0025 0.1938 0.1091 0.0001   3% 1.4% 0.7%
LARGE 34.5 KV 0.2198 0.1163 0.0025 0.1938 0.1091 0.0001   3% 1.4% 0.7%
VERY LARGE AND EXTRA LARGE 34.5 KV 0.2198 0.1163 0.0025 0.1938 0.1091 0.0001   3% 1.4% 0.7%
GP 115 KV / 69 KV 0.064 0.1163 0.0025 0.1938 0.1091 0.0001   3% 1.4% 0.7%
GHMSCI 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001        
FLAT STREETLIGHTS
Per kWh 0.5437 0.1163 0.0025 0.1938 0.1091 0.0001        
Per Lamp
125 W Mercury, 70 W HPS(or equivalent) 22.84 4.88 0.11 8.14 4.58 0.0042        
250 W Mercury, 150 W HPS(or equivalent) 36.43 7.79 0.17 12.98 7.31 0.0067        
400 W Mercury, 250 W HPS(or equivalent) 60.89 13.03 0.28 21.71 12.22 0.0112        
400 W HPS (or equivalent) 94.6 20.24 0.44 33.72 18.98 0.0174        
VAT RATES
Generation
Transmission
System Loss
Power Act Redn
UC & Ener Tax
Other Charges
PMAGC

Source: Manila Electric Co. (Meralco)
1 Changes every month based on the movement in generation cost (based on Article 2 Section 2 of ERC Resolution No. 16, Series of 2009).
2 Refers to amortization of unbilled generation cost from August 2006 to May 2007 in accordance with the ERC Order dated August 16, 2010, under ERC Case Nos. 2006-52/62/76, 2007-001/038/078/101/120/123/135.
3 Changes every month based on the movement in transmission cost in accordance with Article 2 Section 3 of ERC Resolution No. 16, Series of 2009.
4 Implementation of provisionally approved PBR rates for Regulatory Year 2014, in accordance with ERC Order on ERC Case No. 2013-056RC dated June 10, 2013.
5 Changes every month based on the movement in generation and transmission costs and 12-month moving average system loss (based on Article 2 Section 4 of ERC Resolution No.16, Series of 2009)
6 In accordance with the Decision in ERC Case No. 2009-028 RC dated August 16, 2010; Also includes P0.0709/kWh for NPC-SPUG's recovery of ME subsidy shortfall as approved by ERC in its Decision in ERC Case No. 2011-074RC dated July 30, 2012.
7 In accordance with the Decision in ERC Case No. 2011-091 RC dated January 28, 2013.
8 Changes every month in accordance with Article 2 Section 5 of ERC Resolution No. 16, Series of 2009.
9 In accordance with ERC Resolution No. 23, Series of 2010.
10 Lifeline Discount - % of Generation, Transmission, System Loss, Distribution, Supply and Metering Charges.
11 Special Discount - for Private Hospitals duly registered and certified by the Department of Health (DoH) and Educational Institutions duly registered and certified by the Department of Education (DepEd): % of Distribution, Metering & Supply Charges.
12 Power Factor Adjustment - for qualified General Power customers, % of Distribution Charge (in accordance with ERC Order on Case No. 2011-088RC, dated October 6,2011).
13 Generation Charge Adjustment (GCA) added to Peak and Off-Peak generation charge rates of qualified Residential, IS and NIS customers.
14 Energy Tax - for residential customers only
* Rates are VAT exclusive

 

Table 2: Breakdown of September 2013 Charges
for the typical cusomer segments

kWh
Consumption
Generation
Charge
Previous Months Adjustment on Generation Cost Trans-mission
Charge
System Loss Charge Distribution
Charge
Supply
Charge
Supply Cust
Charge
Metering
Charge
50 258.74 1.57 43.36 27.19 61.13 30.22 19.88 20.33
70 362.23 2.2 60.7 38.06 85.58 42.3 19.88 28.46
100 517.47 3.14 86.71 54.37 122.25 60.43 19.88 40.66
200 1,034.94 6.28 173.42 108.74 244.5 120.86 19.88 81.32
300 1,552.41 9.42 260.13 163.11 473.94 181.29 19.88 121.98
400 2,069.88 12.56 346.84 217.48 766.8 241.72 19.88 162.64
500 2,587.35 15.7 433.55 271.85 1,252.15 302.15 19.88 203.3
600 3,104.82 18.84 520.26 326.22 1,502.58 362.58 19.88 243.96
700 3,622.29 21.98 606.97 380.59 1,753.01 423.01 19.88 284.62
800 4,139.76 25.12 693.68 434.96 2,003.44 483.44 19.88 325.28
900 4,657.23 28.26 780.39 489.33 2,253.87 543.87 19.88 365.94
1000 5,174.70 31.4 867.1 543.7 2,504.30 604.3 19.88 406.6
1500 7,762.05 47.1 1,300.65 815.55 3,756.45 906.45 19.88 609.9
3000 15,524.10 94.2 2,601.30 1,631.10 7,512.90 1,812.90 19.88 1,219.80
5000 25,873.50 157 4,335.50 2,718.50 12,521.50 3,021.50 19.88 2,033.00
kWh
Consumption
Rate per kWh              
50 5.1747 0.0314 0.8671 0.5437 1.2225 0.6043 0.3976 0.4066
70 5.1747 0.0314 0.8671 0.5437 1.2225 0.6043 0.284 0.4066
100 5.1747 0.0314 0.8671 0.5437 1.2225 0.6043 0.1988 0.4066
200 5.1747 0.0314 0.8671 0.5437 1.2225 0.6043 0.0994 0.4066
300 5.1747 0.0314 0.8671 0.5437 1.5798 0.6043 0.0663 0.4066
400 5.1747 0.0314 0.8671 0.5437 1.917 0.6043 0.0497 0.4066
500 5.1747 0.0314 0.8671 0.5437 2.5043 0.6043 0.0398 0.4066
600 5.1747 0.0314 0.8671 0.5437 2.5043 0.6043 0.0331 0.4066
700 5.1747 0.0314 0.8671 0.5437 2.5043 0.6043 0.0284 0.4066
800 5.1747 0.0314 0.8671 0.5437 2.5043 0.6043 0.0249 0.4066
900 5.1747 0.0314 0.8671 0.5437 2.5043 0.6043 0.0221 0.4066
1000 5.1747 0.0314 0.8671 0.5437 2.5043 0.6043 0.0199 0.4066
1500 5.1747 0.0314 0.8671 0.5437 2.5043 0.6043 0.0133 0.4066
3000 5.1747 0.0314 0.8671 0.5437 2.5043 0.6043 0.0066 0.4066
5000 5.1747 0.0314 0.8671 0.5437 2.5043 0.6043 0.004 0.4066

 

Metering
Cust Charge
Lifeline
Discount
Lifeline Rate Subsidy Snr. Citizen
Subsidy
Local Franchise Tax VAT Energy
Tax
Universal
Charge
Total
Sep-13 bill
5 (232.91)     1.17 19.53   15.63 270.81
5 (224.77)     2.1 38.36   21.88 481.97
5 (181.35)     3.64 70.36   31.26 833.82
5   21.82 0.02 9.08 184.1   62.52 2,072.49
5   32.73 0.03 14.1 287.58   93.78 3,215.38
5   43.64 0.04 19.43 398.7   125.04 4,429.66
5   54.55 0.05 25.73 533.04   156.3 5,860.60
5   65.46 0.06 30.85 639.05   187.56 7,027.12
5   76.37 0.07 35.97 745.06 5 218.82 8,198.64
5   87.28 0.08 41.09 851.07 15 250.08 9,375.16
5   98.19 0.09 46.21 957.08 25 281.34 10,551.68
5   109.1 0.1 51.33 1,063.09 35 312.6 11,728.20
5   163.65 0.15 76.93 1,593.13 135 468.9 17,660.80
5   327.3 0.3 153.74 3,183.27 660 937.8 35,683.59
5   545.5 0.5 256.16 5,303.44 1,360.00 1,563.00 59,713.98
                 
0.1 (4.6583)     0.0234 0.3906   0.3126 5.4163
0.0714 (3.2110)     0.03 0.5479   0.3126 6.8852
0.05 (1.8135)     0.0364 0.7036   0.3126 8.3382
0.025   0.1091 0.0001 0.0454 0.9205   0.3126 10.3624
0.0167   0.1091 0.0001 0.047 0.9586   0.3126 10.7179
0.0125   0.1091 0.0001 0.0486 0.9968   0.3126 11.0741
0.01   0.1091 0.0001 0.0515 1.0661   0.3126 11.7212
0.0083   0.1091 0.0001 0.0514 1.0651   0.3126 11.7119
0.0071   0.1091 0.0001 0.0514 1.0644 0.0071 0.3126 11.7123
0.0063   0.1091 0.0001 0.0514 1.0638 0.0188 0.3126 11.719
0.0056   0.1091 0.0001 0.0513 1.0634 0.0278 0.3126 11.7241
0.005   0.1091 0.0001 0.0513 1.0631 0.035 0.3126 11.7282
0.0033   0.1091 0.0001 0.0513 1.0621 0.09 0.3126 11.7739
0.0017   0.1091 0.0001 0.0512 1.0611 0.22 0.3126 11.8945
0.001   0.1091 0.0001 0.0512 1.0607 0.272 0.3126 11.9428

Source: Meralco

 

Table 3: Breakdown of the Electricity Tariff

Component Pesos/kwh* share Variance**
Generation 14.4 65.48% 0.40711099
Tranmission 1.91 8.69% 0.00319347
Distribution 3.54 16.10% 0.07486529
Vat 0.41 1.86%  
Other charges and Taxes 1.73 7.87%  
  21.99 100.00%  
*based on Jan 2012. Varies across consumer segments
**Sample variance to indicate volatility from 2007 to 2012
Source: Meralco

Figure 1: Breakdown of the Electricity Tariff

Table 4: Average Power Plant Operating Expenses for Major U.S. Investor-Owned Electric Utilities, 2001 through 2011 (Pesos per Kilowatthour)*

Year Operation Maintenance
Nuclear Fossil Steam Hydro-electric Gas Turbine and Small Scale Nuclear Fossil Steam Hydro-electric Gas Turbine and Small Scale
2001 0.36 0.11 0.18 0.16 0.22 0.11 0.12 0.14
2002 0.39 0.11 0.16 0.14 0.22 0.11 0.11 0.10
2003 0.39 0.12 0.15 0.15 0.22 0.12 0.10 0.10
2004 0.39 0.13 0.16 0.18 0.23 0.13 0.12 0.09
2005 0.36 0.14 0.17 0.16 0.23 0.13 0.12 0.08
2006 0.39 0.15 0.16 0.15 0.24 0.14 0.12 0.09
2007 0.41 0.16 0.23 0.14 0.25 0.14 0.17 0.10
2008 0.43 0.16 0.25 0.16 0.27 0.15 0.17 0.12
2009 0.43 0.18 0.21 0.13 0.27 0.17 0.15 0.11
2010 0.45 0.17 0.23 0.12 0.29 0.17 0.16 0.12
2011 0.47 0.17 0.22 0.12 0.29 0.17 0.16 0.13
Min 0.36 0.11 0.15 0.12 0.22 0.11 0.10 0.08
Max 0.47 0.18 0.25 0.18 0.29 0.17 0.17 0.14
Average 0.41 0.15 0.19 0.15 0.25 0.14 0.14 0.11

 

Year Fuel Total
Nuclear Fossil Steam Hydro-electric Gas Turbine and Small Scale Nuclear Fossil Steam Hydro-electric Gas Turbine and Small Scale
2001 0.20 0.78 0.00 1.87 0.78 1.00 0.31 2.17
2002 0.20 0.69 0.00 1.37 0.80 0.92 0.27 1.61
2003 0.20 0.74 0.00 1.89 0.81 0.98 0.25 2.14
2004 0.20 0.78 0.00 1.94 0.81 1.05 0.28 2.22
2005 0.20 0.93 0.00 2.39 0.78 1.20 0.29 2.63
2006 0.21 0.99 0.00 2.32 0.84 1.28 0.28 2.56
2007 0.21 1.03 0.00 2.53 0.87 1.33 0.40 2.77
2008 0.23 1.22 0.00 2.76 0.92 1.54 0.42 3.04
2009 0.23 1.39 0.00 2.23 0.93 1.74 0.36 2.47
2010 0.29 1.19 0.00 1.86 1.03 1.54 0.39 2.10
2011 0.30 1.16 0.00 1.67 1.06 1.51 0.38 1.92
Min 0.20 0.69 0.00 1.37 0.78 0.92 0.25 1.61
Max 0.30 1.39 0.00 2.76 1.06 1.74 0.42 3.04
Average 0.22 0.99 0.00 2.07 0.88 1.28 0.33 2.33

*converted to pesos per kwh using P43:$1 benchmark
Source: Energy Information Agency

Table 5: U.S. average levelized costs (converted to Pesos/kwh)
for plants entering service in 2018

Plant type Capacity factor (%) Levelized capital cost Fixed O&M Variable O&M (including fuel) Transmission investment Total system levelized cost
Dispatchable Technologies
Conventional Coal 85.00 2.83 0.18 1.26 0.05 4.30
Advanced Coal 85.00 84.40 0.29 1.32 0.05 5.29
Advanced Coal with CCS 85.00 88.40 0.38 1.60 0.05 5.83
Natural Gas-fired
Conventional Combined Cycle 87.00 15.80 0.07 2.08 0.05 2.89
Advanced Combined Cycle 87.00 17.40 0.09 1.94 0.05 2.82
Advanced CC with CCS 87.00 34.00 0.18 2.33 0.05 4.02
Conventional Combustion Turbine 30.00 44.20 0.12 3.44 0.15 5.60
Advanced Combustion Turbine 30.00 30.40 0.11 2.93 0.15 4.50
Advanced Nuclear 90.00 83.40 0.50 0.53 0.05 4.66
Geothermal 92.00 76.20 0.52 0.00 0.06 3.85
Biomass 83.00 53.20 0.61 1.82 0.05 4.77
Non-Dispatchable Technologies
Wind 34.00 70.30 0.56 0.00 0.14 3.72
             
Wind-Offshore 37.00 193.40 0.96 0.00 0.25 9.52
Solar PV1 25.00 130.40 0.43 0.00 0.17 6.20
Solar Thermal 20.00 214.20 1.78 0.00 0.25 11.24
Hydro2 52.00 78.10 0.18 0.26 0.09 3.88

1Costs are expressed in terms of net AC power available to the grid for the installed capacity.
2As modeled, hydro is assumed to have seasonal storage so that it can be dispatched within a season, but overall operation is limited by resources available by site and season.
Note: These results do not include targeted tax credits such as the production or investment tax credit available for some technologies, which could significantly affect the levelized cost estimate. For example,new solar thermal and PV plants are eligible to receive a 30 percent investment tax credit on capital expenditures if placed in service before the end of 2016, and 10 percent thereafter. New wind, geothermal, biomass, hydroelectric, and landfill gas plants are eligible to receive either: (1) a $22 per MWh ($11 per MWh for technologies other than wind, geothermal and closed-loop biomass) inflation-adjusted production tax credit over the plant's first ten years of service or (2) a 30 percent investment tax credit, if placed in service before the end of 2013, or (2012, for wind only).
Source: U.S. Energy Information Administration, Annual Energy Outlook 2013, December 2012, DOE/EIA-0383(2012).
Source: US Energy Information Agency

Table 6: Philippine Energy Mix in 2012

Plan Type Megawatt-hour Generation Share
Coal 28,264,867 38.8%
Oil-based 4,254,015 5.8%
Combined Cycle    227,354 0.3%
Diesel 3,332,081 4.6%
Gas Turbine - 0.0%
Oil-based    694,580 1.0%
Natural Gas 19,641,527 26.9%
Geothermal 10,249,990 14.1%
Hydro 10,252,134 14.1%
Wind 75,339 0.1%
Solar   1,320 0.0%
Biomass    182,819 0.3%
Total Generation 72,922,011 100.0%

Source: Department of Energy

Figure 2: Philippine Energy Mix

Table 7.1: Generation Charge from 2007 to 2012

  NPC WESM QPPL Sta. Rita San Lorenzo Blended Rate
Aug-07 5.1869 9.5469 3.7683 4.2846 3.8702 5.3157
Sep-07 5.119 5.1297 4.0304 4.4377 4.1634 4.6942
Oct-07 4.9054 6.7661 3.7663 4.0755 4.0991 5.2438
Nov-07 4.6362 6.7357 3.5058 3.9894 5.0681 5.3384
Dec-07 3.9728 8.3089 5.4717 3.7921 4.1766 5.192
Jan-08 3.9728 8.3089 5.4717 3.7921 4.1466 4.4523
Feb-08 4.9043 1.9421 4.6857 4.0356 4.101 5.2152
Mar-08 4.5231 5.9356 3.7253 4.1659 4.1165 4.9073
Apr-08 4.0173 10.6822 6.434 4.2749 4.288 4.9192
May-08 4.6735 7.34 4.3045 4.4688 4.4951 4.8763
Jun-08 4.4787 1.8145 4.7244 4.8842 4.9044 4.469
Jul-08 3.9406 4.4943 4.381 4.8667 4.9276 4.4267
Aug-08 3.5777 3.0977 5.5068 5.3463 5.383 4.4433
Sep-08 3.2556 3.2238 5.3438 5.4691 5.4952 4.4418
Oct-08 3.7009 4.152 5.2047 6.3096 6.6102 5.0407
Nov-08 3.4603 5.0141 6.016 5.6999 5.493 4.741
Dec-08 3.5343 6.2308 5.4997 5.0589 4.7231 4.5941
Jan-09 4.0015 6.0662 6.0164 4.0758 3.4111 4.5172
Feb-09 3.5793 2.1589 6.1034 6.2136 5.7897 4.4703
Mar-09 4.2062 2.6996 5.5804 5.6932 5.5155 4.4977
Apr-09 4.7716 3.5375 5.8804 5.7306 5.2303 5.0357
May-09 4.5761 4.9608 5.1714 5.9788 4.2869 4.4419
Jun-09 4.8117 2.3493 8.2389 3.9546 3.9973 4.2781
Jul-09 4.7643 2.422 7.6431 3.9214 3.8533 4.2784
Aug-09 4.2974 2.4109 4.8915 4.0735 4.0741 4.1142
Sep-09 4.2997 2.4331 5.1251 4.1169 4.1324 4.0316
Oct-09 4.225 1.952 5.2091 3.8288 4.1296 3.9128
Nov-09 4.312 2.1767 4.3981 4.7514 4.7913 4.2416
Dec-09 4.397 3.4421 5.3622 4.0207 4.2207 4.2167
Jan-10 4.3764 5.6695 3.2489 3.2489 3.5516 3.9301
Feb-10 4.6615 6.0769 6.0865 4.531 4.5426 4.9421
Mar-10 5.4664 9.3824 5.4799 4.9019 4.3931 5.852
Apr-10 5.5493 11.3607 4.4372 6.7598 5.885 6.703
May-10 5.5997 7.4571 3.9496 5.3621 4.3414 5.4551
Jun-10 5.6769 8.0259 4.149 4.6646 4.6437 5.5352
Jul-10 5.585 7.899 4.3116 4.6464 4.7478 5.5901
Aug-10 4.9554 10.9787 5.5749 4.5148 4.4611 6.0374
Sep-10 6.604 5.95 4.6043 4.4825 4.4139 5.3071
Oct-10 3.6839 7.1516 4.1948 4.2121 4.1478 4.3223
Nov-10 4.851 11.3437 4.0981 4.1508 4.6019 5.3048
Dec-10 5.2892 6.3532 4.1626 4.2292 5.1828 4.9867
Jan-11 4.9855 6.8802 4.2582 3.8319 4.7273 4.7525
Feb-11 4.9511 5.5189 4.9293 4.6914 4.5928 4.8721
Mar-11 5.4987 4.2844 7.6597 4.2398 4.183 4.8624
Apr-11 5.5088 9.6387 4.8565 4.4621 4.3764 5.0543
May-11 5.4745 8.0332 4.2154 4.6061 4.5957 5.0262
Jun-11 5.5799 9.9206 4.509 4.721 4.7228 5.5929
Jul-11 5.7477 8.84116 4.5391 4.6707 4.6707 5.2951
Aug-11 5.228 9.7017 4.7646 4.865 4.7317 5.3781
Sep-11 5.3804 8.0759 4.3928 4.9505 4.9132 5.2096
Oct-11 5.0477 8.1855 4.8317 5.2936 5.0786 5.3508
Nov-11 5.0456 12.4848 4.8789 4.8241 4.4483 5.7927
Dec-11 5.1107 8.9975 4.612 5.0992 5.6449 5.5173
Jan-12 5.1055 7.1438 5.397 5.2102 5.1827 5.4611
Feb-12 5.1419 11.4327 6.061 5.2854 5.2321 5.5861
Mar-12 5.3884 6.3897 6.0078 5.1972 5.1167 5.3388
Apr-12 5.295 8.851 7.1684 5.3346 5.2657 5.6634
May-12 5.7548 7.9117 5.1083 5.4169 5.3434 5.598
Jun-12 5.7006 16.2981 4.8307 5.4734 5.6076 6.134
Jul-12 5.6451 20.7303 4.6195 4.1263 5.305 6.4571
Aug-12 4.9884 14.7003 5.3458 5.8548 5.7842 6.734
Sep-12 5.4549 8.744 5.4171 5.336 5.0973 5.388
Oct-12 5.2343 9.9037 5.0374 5.1473 5.3733 5.4884
Nov-12 5.387 9.9037 4.4352 5.231 4.8837 5.6281
Dec-12 5.0771 12.7223 4.5686 5.209 5.0493 5.4721

Source: Meralco

Table 7.2: Summary Statistics

  Min Max Mean Media Variance
NPC 3.2556 6.6040 4.8328 4.9554 0.4839
WESM 1.8145 20.7303 7.2042 7.1438 13.5644
QPPL 3.2489 8.2389 5.0493 4.8789 0.9450
Sta. Rita 3.2489 6.7598 4.7706 4.6914 0.4957
San Lorenzo 3.4111 6.6102 4.7436 4.7228 0.3773
Blended Rate 3.9128 6.7340 5.0764 5.0543 0.4008

 

Figure 3.1: Generation Charge of Napocor, WESM and the Blended Rate
from October 2007 tp December 2012

Source: Meralco

Figure 3.2: Generation Rates of QPPL Sta. Rita, San Lorenzo Power Plants
& the Blended Rate from October 2007 to December 2012

Source: Meralco

Table 8: Transmission Rate from 1998 to 2012

Month Year Rate Year Rate Year Rate Year Rate Year Rate
Jan 1998 0.607 2001 0.884 2004 0.669 2007 0.652 2010 0.828
Feb 0.621 0.914 0.550 0.692 0.775
Mar 0.629 0.900 0.551 0.721 0.805
Apr 0.630 0.850 0.536 0.628 0.765
May 0.650 0.881 0.535 0.625 0.730
Jun 0.640 0.859 0.522 0.609 0.703
Jul 0.652 0.881 0.548 0.631 0.770
Aug 0.767 1.039 0.524 0.641 0.732
Sep 0.763 1.036 0.527 0.635 0.727
Oct 0.679 0.669 0.527 0.659 0.763
Nov 0.650 0.699 0.515 0.668 0.741
Dec 0.643 0.709 0.524 0.689 0.777
Jan 1999 0.653 2002 0.939 2005 0.609 2008 0.713 2011 0.824
Feb 0.664 0.945 0.570 0.700 0.779
Mar 0.660 0.967 0.618 0.737 0.845
Apr 0.659 0.990 0.503 0.630 0.838
May 0.684 0.910 0.485 0.676 0.724
Jun 0.678 0.777 0.502 0.645 0.727
Jul 0.687 0.783 0.515 0.665 0.754
Aug 0.805 0.912 0.515 0.665 0.681
Sep 0.797 0.926 0.517 0.686 0.675
Oct 0.670 0.528 0.500 0.686 0.717
Nov 0.676 0.542 0.511 0.678 0.691
Dec 0.670 0.527 0.539 0.710 0.712
Jan 2000 0.695 2003 0.548 2006 0.552 2009 0.800 2012 0.676
Feb 0.717 0.561 0.526 0.731 0.655
Mar 0.712 0.557 0.667 0.767 0.675
Apr 0.710 0.558 0.592 0.699 0.634
May 0.746 0.570 0.534 0.708 0.603
Jun 0.743 0.555 0.582 0.679 0.606
Jul 0.770 0.561 0.621 0.698 0.643
Aug 0.911 0.567 0.626 0.671 0.653
Sep 0.923 0.557 0.593 0.671 0.627
Oct 0.683 0.549 0.673 0.723 0.642
Nov 0.718 0.536 0.611 0.678 0.682
Dec 0.673 0.569 0.643 0.716 0.707

Source: National Grid Corporation of the Philippines

Figure 4: Tranmission Charge from 1998 to 2012

Source: NGCP

Table 9: Average Distribution Rate from 2006 to 2012

Month Year Rate Year Rate Year Rate
Jan 2006 1.09 2009 1.01 2012 1.54
Feb 1.02 0.92 1.46
Mar 1.07 1.02 1.48
Apr 1.10 1.03 1.53
May 1.12 1.25 1.53
June 1.08 1.23 1.50
July 1.06 1.22 1.59
Aug 1.03 1.22 1.60
Sep 1.04 1.22 1.62
Oct 1.06 1.24 1.59
Nov 1.05 1.21 1.63
Dec 1.05 1.18 1.64
Jan 2007 1.02 2010 1.01
Feb 0.92 0.92
Mar 0.96 1.21
Apr 1.03 1.55
May 1.03 0.92
June 1.00 1.21
July 0.99 1.53
Aug 0.97 1.48
Sep 0.97 1.49
Oct 0.94 1.47
Nov 0.97 1.48
Dec 0.93 1.49
Jan 2008 0.99 2011 1.01
Feb 0.92 0.92
Mar 0.96 1.61
Apr 1.01 1.64
May 0.98 1.68
June 0.96 1.65
July 0.96 1.60
Aug 0.95 1.48
Sep 0.97 1.49
Oct 0.96 1.49
Nov 0.97 1.53
Dec 0.96 1.48

Source: Meralco

Figure 5: Average Meralco Distribution Charge from 2006 to 2012

Source: Meralco

 

Table 10: Comparison of Electricity Rates Across Southeast Asian Countries in 2007

Country Residential Commercial Industrial
Min Max Ave Rank* Min Max Ave Rank* Min Max Ave Rank*
Brunei 2.9 14.6 8.8 2 3.0 11.7 7.3 3 3.0 11.7 7.3 3
Cambodia 8.8 16.3 12.5 1 15.0 16.3 15.7 1 12.0 15.0 13.5 1
Indonesia 1.5 4.1 2.8 9 2.5 5.0 3.8 9 1.5 3.9 2.7 9
Lao PDR 0.4 2.7 1.6 10 3.0 3.7 3.4 10 2.5 2.5 10
Malaysia 5.5 8.9 7.2 5 2.6 10.5 6.6 4 2.6 10.5 6.6 5
Myanmar 8.4 8.4 6 8.4 8.4 6 8.4 8.4 6
Philippines 3.1 10.6 6.8 3 3.6 9.7 6.7 5 3.3 10.7 7.0 4
Singapore 9.4 9.4 4 4.5 7.3 5.9 8 4.2 6.8 5.5 8
Thailand 3.4 7.4 5.4 8 2.9 7.4 5.1 7 2.9 7.0 5.0 7
Vienam 2.9 8.1 5.5 7 4.2 13.8 9.0 2 2.8 13.8 8.3 2

*Rank based on maximum electricity tariff
Source: Asean Center of Energy



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Posted:27 September 2013


 

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