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Wednesday, March 12, 2014

WESM Prices Cut Meanwhile Meralco Rates to Go Down

 With the Energy Regulatory Commission (ERC) ruling that voided the Wholesale Electricity Spot Market (WESM) prices from the period of Oct 26, 2013. to Dec. 25, 2013, the rates of Manila Electric Company (Meralco) will go down substantially. The ERC in it's manifestation to the Supreme Court (SC) regarding it's Mar. 3, 2014 order ruled that the WESM prices during the period covering the Malampaya shutdown can't qualify as reasonable, rational and competitive. The ruling covers Luzon WESM prices except for the Manila Electric Co. due to the SC's Temporary Restraining Order (TRO) on it's price hike. The ERC ordered WESM to void the spot market prices for traded capacities in November and December. The ERC computation stated that based on average system price of Nov. 2013. at Php 22.13 per Kwh the regulated price shall be set at Php 6.37 per Kwh while for December from the average system price of Php 25.67 per Kwh the regulated price will be at Php 6.11 per Kwh. The computation reduction in WESM costs, on average for 2 months has been estimated at 71.59% and 76% respectively. In the case of Meralco, ERC simulations placed it's generation charge for November at Php 0.48 to Php 0.49 per Kwh, down from Php 3.44 per Kwh originally, and for December at Php 0.47 to Php 0.48 per Kwh down from Php 4.56 per Kwh.     
 
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