Simulation of Meralco

Generation Cost for the

September 2022 Billing Month
 Assumptions and Methodology 1

• Zero BCQ with the following Observed Power Plants:

o SPPC
o SMEC
o SPPC and SMEC
• Actual kWh purchased for the Observed Power Plants were
assumed to have purchased from WESM
• Original WESM average generation cost was multiplied with
the simulated kWh purchased from WESM to obtain the
Total Generation Cost for the same
• Total Generation Cost was divided by the Total kWh
Purchased to obtain the Average Generation Cost

Department of Energy
Empowering the Filipino
 Considerations

• WESM Average Generation Cost may actually change as the

kWh purchased from WESM change. However, for simplicity
of the simulation, the same value was used to obtain the
Total Generation cost for WESM
• Only total Generation Cost for the month was considered in
this simulation. Other Cost Adjustments may also have effect
with the results if accounted

Department of Energy
Empowering the Filipino
 Results

Meralco 0 BCQ 0 BCQ w/ 0 BCQ with

  Rates w/ SPPC SMEC both SPPC
Archive and SMEC
Average Generation
Cost, PhP/kWh 6.9406 7.3846 7.1123 7.6061
(September billing
month)
% Increase 6.3968% 2.4733% 9.5884%
 

Department of Energy
Empowering the Filipino
 Assumptions and Methodology 2

• Zero BCQ with the following Observed Power Plants:

o SPPC
o SMEC
o SPPC and SMEC
• Actual kWh purchased for the Observed Power Plants were
assumed to have purchased from WESM
• Original WESM average generation cost was multiplied with
the simulated kWh purchased from WESM to obtain the
Total Generation Cost for the same
• Other Cost Adjustments for the Observed Plants were
included in the Total Generation Cost
• Total Generation Cost was divided by the Total kWh
Purchased to obtain the Average Generation Cost

Department of Energy
Empowering the Filipino
 Considerations

• WESM Average Generation Cost may actually change as the

kWh purchased from WESM change. However, for simplicity
of the simulation, the same value was used to obtain the
Total Generation cost for WESM
• Other Cost Adjustments for the Observed Plants were
included in the Total Generation Cost. However, it was not
guaranteed that the same amount of cost adjustments will
be given if the BCQ is zero

Department of Energy
Empowering the Filipino
 Results

Meralco 0 BCQ 0 BCQ w/ 0 BCQ with

  Rates w/ SPPC SMEC both SPPC
Archive and SMEC
Average Generation
Cost, PhP/kWh 6.9406 7.3750 7.0753 7.5596
(September billing
month)
% Increase 6.2594% 1.9409% 8.9186%
 

Department of Energy
Empowering the Filipino
THANK YOU