Group 1 Abril, Kim Rohn GE-FEL EW-AYG 16/03/2022

Iway, Ron Michael

Lumayno, Jaxel
Rivera, Ruel Vince
ELECTRICITY BILL ANALYSIS ACTIVITY

1. List down all acronyms used in the bill. Using the internet, search what each acronym means
● GRAM - Generation Rate Adjustment Mechanism
● ICERA - Incremental Currency Exchange Rate Adjustment
● ACRM - Automatic Cost Recovery Mechanism
● PSALM - Power Sector Assets and Liabilities Management
● NPC - National Power Corporation
● PCA - Power Cost Adjustment
● PWA - Purchased Water Adjustment

2. Search, and then briefly discuss, what is meant by each of the following:
a. Lifeline Rate Subsidy
Is a subsidized rate given to low income users consuming electricity below 100 Kilowatt-
hours (kWh).

b. Missionary electrification
Missionary electrification refers to “the provision of basic electricity service in Unviable
Areas with the aim of bringing the operations in these areas to viability levels. In addition,
missionary electrification refers to the power generation and associated delivery.

c. Fit-all renewable
This aims to spur the development of renewable power sources such as wind, run-of-
river, hydro, solar, and biomass facilities.

3. In the given unbundled electricity bill, how many items are being charges to the consumer?
There are 15 items being charged to the consumers. Generation charge,
Transmission charge, System Loss Charge, Distribution Charge, Supply Charge, Retail Customer
Charge, Metering System Charge, Local Franchise Tax, Value Added Tax
(Generation/Transmission, Distribution, and others), and Universal Charges-PSALM (NPC
Stranded Dept, NPC Stranded Cost, Missionary Electrification, Environmental Charge).

4. Compare the rates being charged for each item in the July and August billings.
a. Which rates are fixed?
 GRAM/ICERA/ACRM
 Distribution Revenues (Distribution Charge, Supply Charge, Retail Customer
Charge, Metering System Charge)
 Government Revenues (Local Franchise Tax)
 Value Added Tax (Distribution and others)
 Universal Charge (NPC Stranded Dept, NPC Stranded Cost, Missionary
Electrification, Environmental Charge)
 Fit Renewable.
 b. Which rates changed?
 Generation Charge
 Transmission Charge
 System Loss Charge
 Lifeline Rate Subsidy
 Value Added Tax (Generation/Transmission)

5. Is generation charge fixed? Search online for an explanation why this is so. Briefly discuss the
reason/s in your output sheet.
No, generation charge is not fixed as stated by Meralco on November 12, 2021 “the
generation charge for November increased by P0.2911/kWh to P5.3346/kWh due to the
shutdown of the Malampaya natural gas facility.” Basically, if the electric company has tight
electrical supply due from being unable to retrieve the electricity from IPP’s then they must also
increase the rate of charge to be able to compensate for the lack of supply and the demand of
the consumers.
Retrieved from https://www.bworldonline.com/meralco-rates-to-increase-in-november/
Retrieved from https://residential.meralco.com.ph/billings-and-payments/understanding-your-
bill

6. How is the value of the kWh monthly energy consumption of the customer determined in the bill?
It will be determined by the monthly consumption indicated in the meter reading,
basically the present minus the previous reading. In addition, it also shows also on the kwh billed.
The kWh you see on the power bill expresses the amount of power that is consumed in a month.
To calculate the kWh for a specific appliance, multiply the power rating (watts) of the appliance by
the amount of time (hrs.) you use the appliance and divide by 1000.

7. How is the information on the average kWh/day energy consumption useful?

The information on the average kWh/day is useful because it determines how much power
a household consumes in 24-hours.

8. Consider the third bill attached to this sheet, which is a water consumption bill.
a. What is the major difference of this water bill to an electricity?
• Itemization of both the bills are different, the electrical bill does not have the
water bill’s itemization and vice versa.
• Electrical bills tend to have longer itemization while the water bill doesn’t.
• Water bill is based on water consumption while electrical bill is electrical
consumption.
b. Why are changes itemized in an electricity bill? Is itemization optional or there is a
mandate/law behind it?
• Itemization is important for transparency. It makes consumers understand that the
amount of electricity they consumed should also reflect on how much they would
pay for it.
• RA 9136 supports the transparency and itemization of electrical consumption.
• Unbundling of the various bill components is mandated under the Electric Power
Industry Reform Act (EPIRA) of 2001.

c. As consumers, which type of bill does your group refer.

- Second Bill with a total amount of PHP 1,509.