From US$0.0911/kWh in November, Meralco's generation charge was computed at US$0.0006 less per kilowatthour this December at US$0.0906.
"Amidst rising prices of goods and commodities, the generation charge has generally been on the decline over the past months. If we would compare the generation charge now from that of last April, there has been a cumulative P0.8176 (US$0.0176) per kWh reduction," said Manila Electric Company Vice President and Utility Economics Head Ivanna de la Pena.
"The decrease in the generation charge was mainly due to the higher dispatch and lower fuel cost of the Independent Power Producers in November. Power obtained from the IPPs registered a decline of P0.48 (US$0.0103) per kWh. This more than offset the average P0.44 (US$0.0095) per kWh increase in cost of power sourced from National Power Corporation and the Wholesale Electric Spot Market," de la Pena added.
The dispatch of the IPPs increased from 76 percent in October to 85 percent in November. Following full consumption of contracted quantities of natural gas this year, the First Gas plants started to burn lower-priced banked gas. Banked gas supplied 14 percent of the combined consumption of the natural gas plants in November. WESM billing adjustments, on the other hand, mainly accounted for the average US$0.0095 per kWh increase in the combined purchases from NPC and the WESM.
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