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Electricity Bill Exercise

This document provides information and definitions related to analyzing electricity bills in the Philippines. It defines various acronyms and terms used in electricity bills, such as the Lifeline Rate subsidy for low-income customers. It also explains what is included in fixed charges versus changed rates on bills and how consumption is calculated. The document advocates for transparent, unbundled electricity bills that clearly show the rates for each charge.

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Cyville Avenir
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294 views3 pages

Electricity Bill Exercise

This document provides information and definitions related to analyzing electricity bills in the Philippines. It defines various acronyms and terms used in electricity bills, such as the Lifeline Rate subsidy for low-income customers. It also explains what is included in fixed charges versus changed rates on bills and how consumption is calculated. The document advocates for transparent, unbundled electricity bills that clearly show the rates for each charge.

Uploaded by

Cyville Avenir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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AVENIR, CYVILLE BS ECE 2 GE-FEL EW-AYG 12:30-1:30 MWF

ELECTRICITY BILL ANALYSIS EXERCISE 1

1. 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. a. Lifeline Rate- is the subsidized rate given to marginalized/low income captive market
end-users who cannot afford to pay at full cost. The marginalized end-users refer to low-
income, captive, household electricity consumers who have levels of electricity
consumption below a threshold level to be determined by ERC.

b. Missionary Electrification- refers to the provision of basic electricity service in Unviable


Areas with the ultimate aim of bringing the operations in theses areas to viability levels,
including the provision of power generation and its associated power delivery systems in
areas that are not connected to the national grid transmission system.

c. Fit-all Renewable- is an incentive scheme that, among others, grants priority connections
to the grid, priority purchase and transmission of, and payment for, electricity generated,
and fixed tariff for a period not less than twelve (12) years to be determined by the Energy
Regulatory Commission (ERC)' for eligible Renewable Energy (RE) generation.

3. 18 items
4. Fixed Charges: Changed Rates:
GRAM/ICERA/ACRM Generation Charge
Distribution Charge Transmission Charge
Supply Charge System Loss Charge
Retail Customer Charge Lifeline Rate Subsidy
Metering System Charge Generation/Transmission
Local Franchise Tax
Distribution
Others
NPC Stranded Debt
NPC Stranded Cost
Missionary Electrification
Environmental Charge
Fit-All Renewable
5. Generation charge is not fixed. They are fluctuating because of some reasons. For example,
when power plants shut down, or there’s unusually high demand like in the summer,
generation charges increase because Meralco has to source electricity from alternative,
pricier providers.

6. The kWh monthly energy consumption can be determined by looking at the meter reading
at the present month subtracted by the kWh reading of the previous month.

7. The average kWh/day energy consumption is useful because through this, the consumer
can know how much electricity he/she uses per day and he could be aware of his electricity
usage.

8. a. The water bill in the third picture does not show the rate of each charge in a water bill
unlike the electricity bill that the rate of each charge is known so you can check whether
your bill is accurate or not.

b. Yes there is a mandate that electricity bill should be unbundled.


Section 36 of R.A. No. 9136, otherwise known as the Electric Industry Reform Act of
2001 provides that within six (6) months from the effectivity of said Act (which is on or
before December 26, 2001), NPC and each distribution utility shall file with the
Commission (ERC) its revised rates, which must be reflective of the cost of providing
electricity service.

c. I would prefer an electricity bill since it is unbundled meaning it is transparent, clear and
informative to the consumers. It shows the rate of each charge and you can check whether
your electricity bill is accurate or not.

Sources:
https://www.erc.gov.ph/Files/Render/media/GramandIcera.pdf
https://residential.meralco.com.ph/billings-and-payments/acrm
https://www.erc.gov.ph/Files/Render/media/Primer%20on%20Universal%20Charge.pdf
https://www.bereautilities.com/what-is-the-pca-charge-on-my-monthly-berea-municipal-utility-
electric-bill/
https://www.mcwd.gov.ph/?topic=additional-charges/
https://erc.gov.ph/Files/Render/media/13.%20Lifeline%20Subsidy%20Rates.pdf
http://www.erc.gov.ph/Files/Render/issuance/733
https://www.transco.ph/downloads/fitall/ERCCASE2017-079RC2018FIT-
ALLAPPLICATION_docketedAug3017.pdf
https://www.imoney.ph/articles/whats-in-your-meralco-bill/
https://www.erc.gov.ph/Files/Render/media/Primer%20on%20Unbundling%20of%20Electricity
%20Rates.PDF

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