|
|
Embedded PPA in the New Unbundled Power Rates
Prepared by AGHAM/POWER
July 1, 2003
Annex A:
COMPARATIVE
MERALCO BILLS
|
A.
UNBUNDLED, 50 kwh
|
|
|
|
|
|
|
|
Kwh consumption:
|
50
|
50
|
|
|
|
W/
50%
discount
|
|
Generation charge
|
170.15
|
85.07
|
|
Transmission charge
|
48.03
|
24.01
|
|
System loss charge
|
27.47
|
13.73
|
|
Distribution charge
|
28.65
|
14.32
|
|
Metering Charge:
|
|
|
|
Retail customer charge
|
5.00
|
2.50
|
|
Metering system charge
|
12.18
|
6.09
|
|
Supply charge
|
26.36
|
13.18
|
|
Lifeline rate
subsidy
|
0.00
|
0.00
|
|
Interclass subsidy
|
-35.65
|
-35.65
|
|
Power Act Reduction
|
-15.00
|
-15.00
|
|
CERA
|
3.40
|
3.40
|
|
Subtotal:
|
270.56
|
111.66
|
|
Franchise Tax:
|
|
|
|
National
|
5.41
|
5.41
|
|
Local
|
0.81
|
0.81
|
|
Universal Charges:
|
|
|
|
Missionary
|
0.84
|
0.84
|
|
Environmental Fund
|
0.13
|
0.13
|
|
GRAM (to be
collected 3 months later)
|
|
|
TOTAL:
|
277.75
|
118.84
|
|
Effective
Power Rate:
|
5.55
|
2.38
|
|
|
|
|
|
B. OLD RATES, 50
kwh
|
|
|
|
|
W/
PPA
|
W/O
PPA
|
|
Kwh consumption:
|
50
|
50.00
|
|
|
|
|
|
Energy charge
|
78.65
|
78.65
|
|
CERA
|
8.38
|
8.38
|
|
PPA
|
143.05
|
|
|
Power Act Reduction
|
-15.00
|
-15.00
|
|
Universal Charge:
|
|
0.00
|
|
Missionary
|
0.84
|
0.84
|
|
Environmental Fund
|
0.13
|
0.13
|
|
TOTAL:
|
216.05
|
73.00
|
|
Effective
Power Rate:
|
4.32
|
1.46
|
|
|
|
|
|
* Using PPA of
May2003
Basic charge
decreased by 16.7 cents as per SC decision+A20
|
|
|
|
A. UNBUNDLED, 100
kwh
|
|
|
|
|
|
|
|
Kwh consumption:
|
100
|
100
|
|
|
|
W/
20%
discount
|
|
Generation charge
|
340.29
|
272.23
|
|
Transmission charge
|
96.05
|
76.84
|
|
System loss charge
|
54.93
|
43.94
|
|
Distribution charge
|
57.29
|
45.83
|
|
Metering Charge:
|
|
|
|
Retail customer charge
|
5.00
|
4.00
|
|
Metering system charge
|
24.35
|
19.48
|
|
Supply charge
|
52.71
|
42.17
|
|
Lifeline rate
subsidy
|
0.00
|
0.00
|
|
Interclass subsidy
|
-71.30
|
-71.30
|
|
Power Act Reduction
|
-30.00
|
-30.00
|
|
CERA
|
6.80
|
6.80
|
|
Subtotal:
|
536.12
|
410.00
|
|
Franchise Tax:
|
|
|
|
National
|
10.72
|
10.72
|
|
Local
|
1.61
|
1.61
|
|
Universal Charges:
|
|
|
|
Missionary
|
1.68
|
1.68
|
|
Environmental Fund
|
0.25
|
0.25
|
|
GRAM (to be
collected 3 months later)
|
|
|
|
TOTAL:
|
550.38
|
424.26
|
|
Effective
Power Rate:
|
5.50
|
4.24
|
|
|
|
|
|
B. OLD RATES, 100
kwh
|
|
|
|
|
W/
PPA
|
W/O
PPA
|
|
Kwh consumption:
|
100
|
100.00
|
|
|
|
|
|
Energy charge
|
240.30
|
240.30
|
|
CERA
|
25.62
|
25.62
|
|
PPA
|
286.10
|
|
|
Power Act Reduction
|
-30.00
|
-30.00
|
|
Universal Charge:
|
|
|
|
Missionary
|
1.68
|
1.68
|
|
Environmental Fund
|
0.25
|
0.25
|
|
TOTAL:
|
523.95
|
237.85
|
|
Effective
Power Rate:
|
5.24
|
2.38
|
|
* Using PPA of May
Basic charge
decreased by 16.7 cents
as per SC decision
|
|
|
|
A. UNBUNDLED, 186
kwh
|
|
|
|
|
|
|
|
Kwh consumption:
|
186
|
|
|
|
|
|
|
Generation charge
|
632.94
|
|
|
Transmission charge
|
178.65
|
|
|
System loss charge
|
102.17
|
|
|
Distribution charge
|
106.56
|
|
|
Metering Charge:
|
|
|
|
Retail customer charge
|
5.00
|
|
|
Metering system charge
|
45.29
|
|
|
Supply charge
|
98.04
|
|
|
Lifeline rate
subsidy
|
14.15
|
|
|
Interclass subsidy
|
-132.62
|
|
|
Power Act Reduction
|
-55.80
|
|
|
CERA
|
12.65
|
|
|
Subtotal:
|
1,007.04
|
|
|
Franchise Tax:
|
|
|
|
National
|
20.14
|
|
|
Local
|
3.02
|
|
|
Universal Charges:
|
|
|
|
Missionary
|
3.12
|
|
|
Environmental Fund
|
0.47
|
|
|
TOTAL:
|
1,033.79
|
|
|
Effective
Power Rate:
|
5.56
|
|
|
|
|
|
|
B. Old Rates, 186
kwh
|
|
|
|
|
|
|
|
Kwh consumption:
|
186
|
186
|
|
|
W/
PPA
|
W/O
PPA
|
|
Energy charge
|
518.34
|
518.34
|
|
CERA
|
55.25
|
55.25
|
|
PPA
|
532.15
|
|
|
Power Act Reduction
|
-55.80
|
-55.80
|
|
Universal Charge:
|
|
|
|
Missionary
|
3.12
|
3.12
|
|
Environmental Fund
|
0.47
|
0.47
|
|
TOTAL:
|
1,053.53
|
521.38
|
|
Effective
Power Rate:
|
5.66
|
2.80
|
|
|
|
|
|
* Using PPA of May
Basic charge
decreased by 16.7 cents
as per SC decision
|
|
|
|
A. UNBUNDLED, 300
kwh
|
|
|
|
|
|
|
|
Kwh consumption:
|
300
|
|
|
|
|
|
|
Generation charge
|
1,020.87
|
|
|
Transmission charge
|
288.15
|
|
|
System loss charge
|
164.79
|
|
|
Distribution charge
|
262.95
|
|
|
Metering Charge:
|
|
|
|
Retail customer charge
|
5.00
|
|
|
Metering system charge
|
73.05
|
|
|
Supply charge
|
158.13
|
|
|
Lifeline rate
subsidy
|
22.83
|
|
|
Interclass subsidy
|
-213.90
|
|
|
Power Act Reduction
|
-90.00
|
|
|
CERA
|
31.21
|
|
|
Subtotal:
|
1,723.08
|
|
|
Franchise Tax:
|
|
|
|
National
|
34.46
|
|
|
Local
|
5.17
|
|
|
Universal Charges:
|
|
|
|
Missionary
|
5.04
|
|
|
Environmental Fund
|
0.75
|
|
|
TOTAL:
|
1,768.50
|
|
|
Effective
Power Rate:
|
5.90
|
|
|
|
|
|
|
B. Old Rates, 300
kwh
|
|
|
|
|
|
|
|
Kwh consumption:
|
300
|
300
|
|
|
W/
PPA
|
W/O
PPA
|
|
Energy charge
|
886.90
|
886.90
|
|
CERA
|
94.54
|
94.54
|
|
PPA
|
858.30
|
|
|
Power Act Reduction
|
-90.00
|
-90.00
|
|
Universal Charge:
|
|
|
|
Missionary
|
5.04
|
5.04
|
|
Environmental Fund
|
0.75
|
0.75
|
|
TOTAL:
|
1,755.53
|
897.23
|
|
Effective
Power Rate:
|
5.85
|
2.99
|
|
|
|
|
|
* Using PPA of May
Basic charge
decreased by 16.7 cents
as per SC decision
|
|
|
A. UNBUNDLED, 616
kwh
|
|
|
|
|
|
|
|
Kwh consumption:
|
616
|
|
|
|
|
|
|
Generation charge
|
2,096.19
|
|
|
Transmission charge
|
591.67
|
|
|
System loss charge
|
338.37
|
|
|
Distribution charge
|
1,023.48
|
|
|
Metering Charge:
|
|
|
|
Retail customer charge
|
5.00
|
|
|
Metering system charge
|
150.00
|
|
|
Supply charge
|
324.69
|
|
|
Lifeline rate
subsidy
|
46.88
|
|
|
Interclass subsidy
|
-439.21
|
|
|
Power Act Reduction
|
-184.80
|
|
|
CERA
|
121.49
|
|
|
Subtotal:
|
4,073.75
|
|
|
Franchise Tax:
|
|
|
|
National
|
81.48
|
|
|
Local
|
12.22
|
|
|
Universal Charges:
|
|
|
|
Missionary
|
10.35
|
|
|
Environmental Fund
|
1.54
|
|
|
TOTAL:
|
4,179.34
|
|
|
Effective
Power Rate:
|
6.78
|
|
|
|
|
|
|
B. Old rates, 616
kwh
|
|
|
|
|
|
|
|
Kwh consumption:
|
616
|
616
|
|
|
W/
PPA
|
W/O
PPA
|
|
Energy charge
|
1,991.53
|
1,991.53
|
|
CERA
|
212.30
|
212.30
|
|
PPA
|
1,762.38
|
|
|
Power Act Reduction
|
-184.80
|
-184.80
|
|
Universal Charge:
|
|
0.00
|
|
Missionary
|
10.35
|
10.35
|
|
Environmental Fund
|
1.54
|
1.54
|
|
TOTAL:
|
3,793.29
|
2,030.91
|
|
|
6.16
|
3.30
|
|
* Using PPA of May
Basic charge
decreased by 16.7 cents
as per SC decision
|
|
|
|
SUMMARY: NEW UNBUNDLED RATES VS. OLD RATES
|
Kwh
Consumption
|
50
|
100
|
186
|
300
|
616
|
|
|
|
|
|
|
|
|
Old rates with
PPA
|
216
|
524
|
1,054
|
1,756
|
3,793
|
|
Old rates w/o
PPA
|
73
|
238
|
521
|
897
|
2,031
|
|
Difference:
|
143
|
286
|
532
|
858
|
1,762
|
|
New unbundled
rates w/o discount
|
278
|
550
|
1,034
|
1,769
|
4,179
|
|
New unbundled
rates w discount
|
119
|
424
|
|
|
|
|
New rates w/o discount vs Old rates w/o
PPA
|
46
|
186
|
512
|
871
|
2,148
|
|
Annex B:
COST ITEMS IN
YOUR NEW MERALCO BILL
Generation
Charge:
Php3.4029/kwh
for all consumers
The
cost of electricity purchased by Meralco from NAPOCOR and various IPPs
(Independent Power Producers) like Mirant and the Lopez IPPs. Already bundled in
this item are the PPAs of the IPPs.
Also
included is the deferred PPA being collected by Meralco in the amount of 10.02
centavos per kwh.
Transmission
Charge:
96.05
centavos/kwh for all consumers
except Government Hospitals and Metered street lights (GHMS) @ P1.1885 and Flat
Street lights @P0.9104.
Cost
of delivering the electricity from the generating plants of the IPPs, usually in
the provinces, to the distribution system of the Meralco in Metro Manila..
Embedded in this cost are the PPAs of the IPPs.
Distribution
Charge:
Ranges
from 52 centavos to P2.31 per kwh for residential consumers and P112 to P141 per
KW for commercial and industrial consumers.
Cost
of building, operating and maintaining the distribution system of
Meralco.
Systems
Loss Charge
54.93
centavos/kwh for all residential consumers; ranges from 7.10
to 54.82 centavos for commercial and industrial consumers.
This
is the cost of electricity lost due to technical and non-technical (pilferages)
losses. RA 7832 limits this to 9.5% of total
purchased power. This was previously bundled with the PPA.
Metering
Charge Charge
24.35
centavos per kwh plus P5 per customer per month for all residential consumers;
P317.74 per customer per month for commercial and residential consumers.
Cost
of installing metering facilities and their reading, operation and maintenance.
Supply
Charge
52.71
centavos/kwh for all residential consumers;
P655.33 per cust/mo for all commercial and residential
consumers.
Cost
of rendering service to consumers, such
as billing, collection, customer assistance and the like.
Lifeline
Rate Subsidy Charge
The
subsidized rate given to marginalized and low-income subscribers who cannot
afford to pay the full cost. (see details in the main text)
Inter
Class Cross Subsidy Charge
An
amount charge by Meralco to industrial
and commercial consumers as well as to the other subsidizing customer sectors
in order to reduce electricity rates of other customers such as the
residential consumers, government hospitals and street lights. (see detail in
the main text)
Currency
Exchange Rate Adjustment Charge
Adjustment
due to fluctuations in the peso-dollar rates. This is currently at 11.87%
Franchise
Taxes
Utility
companies pay franchise taxes to the national and local governments.
The national franchise tax is 2% of gross revenues while the local
franchise taxes range from 0.05% to 0.75% of
gross revenues. This was previously bundled with the PPA.
Universal
Charges
The
charge imposed for the recovery of the stranded debts, stranded contract costs
of NPC and stranded contract costs of eligible contract costs of distribution
utilities like Meralco. This includes the missionary electrification charge and
environmental charge which are currently being collected. Posted
by Bulatlat.com
Related
article: Consumer
Groups Urge 2004 Candidates to Take up Power Issue
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