What's Causing High Power Rates?

[Travis]

from p77 to a curent p607 per kwh I am sure glad I do not live in that area & wonder why electric here in Cebu cost so much http://www.sunstar.c...igh-power-ratesThe rapid climb in the cost of maintaining a power reserve for the Mindanao grid is causing the radical hike in the cost of electricity currently billed to consumers despite some five months of regular brownouts.In a press advisory, the National Grid Corporation of the Philippines (NGCP) said this cost item, referred to as ancillary services, increased almost eight times its level in December 2009.From P77 per kilowatt in December 2009, the cost of ancillary services went up to P607 per kilowatt last April. The low-cost regime occurred during the time the two power barges supplying the service to NGCP in Mindanao were still owned by the National Power Corporation, a government-owned and controlled firm. The power barges were eventually sold to the Aboitiz Group; the first one last February, and the other one by March. At that time, power generation in the Mindanao grid has been aided by oil-based sources as its hydroelectricity production capacity began to dwindle amid the onset of a dry spell. As grid operator, the NGCP is required to maintain a certain level of power reserve that is “necessary to support the transmission of electricity from power resources to load customers and to maintain the reliability of power services.”Beth Martinez, NGCP corporate communications officer for Western Mindanao, said one basic function of a power reserve is ensuring that the right voltage of electricity is being wheeled to load customers. Since NGCP does not operate a power plant, it contracts the services of power generators to be able to come up with the requisite level of reserve for the grid, Martinez added. The increase in cost of ancillary services happened as the rate for transmission has remained stable the past few months. Electricity transmission from generators to load customers is the principal business of NGCP as operator of the country’s power grids.Its direct customers include distribution utilities, which could be private utilities and electric cooperatives; and large industries and companies directly connected to the grid. The NGCP bills and collects both transmission and ancillary services charges from its direct customers, who in turn, passed on the charges to retail power consumers. The company then remits the collection of ancillary service charges to its contracted providers per an Ancillary Services Procurement Agreement approved by the Energy Regulatory Commission (ERC), NGCP said. As the collecting agent, the company does not get revenues from the said fees, explained NGCP. The charges are not subsidized anymore by government and thus reflect the true cost of electricity per current market forces, especially the prevailing world market prices for fuel used in running the power barges which supply the ancillary services, NGCP stressed. The company also pointed out that its billing computation and collection for ancillary services have been approved by the ERC. (Ryan D. Rosauro)

[Art2ro]

Yeah, really sucks doesn't it? I too don't understand why electric costs has sky rocketed! Some one in government better get a handle on this! I'm sure there are a lot of people who are already complaining! I need to find a way to reduce my electric bill by finding an alternate source like my own generator set that runs on a different type of fuel power cell other than gasoline or diesel, maybe a lite oil burning generator that I saw on the internet long ago, solar panels or low profile wind power! Will probably cost an arm and a leg! Just may have to move to a cooler area in the Philippines and live in an open air home! That would be nice for sure! :lol::yes:

[Art2ro]

Yeah, I just got my electric bill from Meralco on-line automatically each month. My current billing for between May to June is P9,450.00, just a few hundred pesos more from my last month's bill. Some of our neighbors with a large family spend more than I do where they have 3 A/C running during the warmer months! I know our power usage is a bit much, but hey, I don't skimp when it comes to our comfort running our bedroom 1 HP split type A/C 24/7! We usually turn off our A/C at night during the cooler months and just keep our windows open, that's about as far as I will go to save on our electric bill! :11_12_14[1]:

[mike]

from p77 to a curent p607 per kwh I am sure glad I do not live in that area & wonder why electric here in Cebu cost so much http://www.sunstar.c...igh-power-ratesThe rapid climb in the cost of maintaining a power reserve for the Mindanao grid is causing the radical hike in the cost of electricity currently billed to consumers despite some five months of regular brownouts.In a press advisory, the National Grid Corporation of the Philippines (NGCP) said this cost item, referred to as ancillary services, increased almost eight times its level in December 2009.From P77 per kilowatt in December 2009, the cost of ancillary services went up to P607 per kilowatt last April. The low-cost regime occurred during the time the two power barges supplying the service to NGCP in Mindanao were still owned by the National Power Corporation, a government-owned and controlled firm. The power barges were eventually sold to the Aboitiz Group; the first one last February, and the other one by March. At that time, power generation in the Mindanao grid has been aided by oil-based sources as its hydroelectricity production capacity began to dwindle amid the onset of a dry spell. As grid operator, the NGCP is required to maintain a certain level of power reserve that is “necessary to support the transmission of electricity from power resources to load customers and to maintain the reliability of power services.”Beth Martinez, NGCP corporate communications officer for Western Mindanao, said one basic function of a power reserve is ensuring that the right voltage of electricity is being wheeled to load customers. Since NGCP does not operate a power plant, it contracts the services of power generators to be able to come up with the requisite level of reserve for the grid, Martinez added. The increase in cost of ancillary services happened as the rate for transmission has remained stable the past few months. Electricity transmission from generators to load customers is the principal business of NGCP as operator of the country’s power grids.Its direct customers include distribution utilities, which could be private utilities and electric cooperatives; and large industries and companies directly connected to the grid. The NGCP bills and collects both transmission and ancillary services charges from its direct customers, who in turn, passed on the charges to retail power consumers. The company then remits the collection of ancillary service charges to its contracted providers per an Ancillary Services Procurement Agreement approved by the Energy Regulatory Commission (ERC), NGCP said. As the collecting agent, the company does not get revenues from the said fees, explained NGCP. The charges are not subsidized anymore by government and thus reflect the true cost of electricity per current market forces, especially the prevailing world market prices for fuel used in running the power barges which supply the ancillary services, NGCP stressed. The company also pointed out that its billing computation and collection for ancillary services have been approved by the ERC. (Ryan D. Rosauro)

What they forget to tell everyone was that they bought the units and then revalued the units at over three times their actual paid for cost. They then applied the ancillary recovery of costs on the revalued figure and not the cost figure.Nice business if you can get it.Did they build the barges? NO!! Did they do anything to increase the value of their assets by over 3 times 24 hours after purchasing? NO!!:th_thimage_265775:They bought a going concern and stiffed the valuation and pricing that goes with it.Mindanao is now screwed because of this leaching style of doing business.:11_12_14[1]: Edited June 18, 2010 by mike

[UZI]

Still don't understand why some people have such high bills. We just got our Meralco bill for using 1.5hp split aircon every afternoon & night, with 42" Flat Screen tv, pc, fans on all day & usual kitchen appliances It is cheaper this month at Php4,800 from last months Php5,400

[mike]

Still don't understand why some people have such high bills. We just got our Meralco bill for using 1.5hp split aircon every afternoon & night, with 42" Flat Screen tv, pc, fans on all day & usual kitchen appliances It is cheaper this month at Php4,800 from last months Php5,400

I do not understand it either we have simlar appliances and usage our bills are up from 7000 a month to over 16thou, yes meralco! Edited June 19, 2010 by Mr. Lee
repair post placement

[UZI]

Still don't understand why some people have such high bills. We just got our Meralco bill for using 1.5hp split aircon every afternoon & night, with 42" Flat Screen tv, pc, fans on all day & usual kitchen appliances It is cheaper this month at Php4,800 from last months Php5,400

I do not understand it either we have simlar appliances and usage our bills are up from 7000 a month to over 16thou, yes meralco!

:lol: P16k.....................!!!You running the street lighting?We used 416 Kwh. Yours must be over a 1,000 then :th_noproblem:

[Art2ro]

Well, a P16,000 a month Meralco bill is way over the top, but I know some neighbors of ours do reach that amount! You must be running 2 to 3 A/C units at the same time! Our average 12 month, monthly kilowatt usage is around 600 kilo watts a month, P5,000 to P8,000 per month, because our bedroom 1HP split type A/C is on 24/7 through out the year and we keep our room pretty cool. We also use a heavy duty high tech washer and dryer twice a week and a 6 burner (2 electric, 4 gas) gas/electric range oven. I know we can do better, but we won't skimp on our comfort as long as we can afford it! What's life for, but to enjoy it! Some one will eventually get the power companies in line! You watch!:th_noproblem:

[Call me bubba]

here are 2 links from the MANILA TIMES.net about what are some of the reasons of HIGH POWER COSTS.http://www.manilatim...9-welfare-down/http://www.manilatim...of-electricity/listed below is part of the article. BUT it really says it all.hope that this helps.........The experts explained why power costs so much here and how these costs could go down. The main culprits pinpointed—apart from the power companies—are the government officials in the Energy Regulatory Commision who have implemented the Electricity Power Industry Reform Act (Epira) in such a way that it benefits the power companies and distributors to the disadvantage of the whole economy. Meralco has a website that allows you to view past months power costs. includes all the various collected charges.

Edited March 10, 2011 by ed villas