Veco, other firms need to explain systems losses

[INFRACTION]

time to turn on the Bataan Nuclear Power Plant

[leo_trams]

how do they measure systems loss?

care to share the formula?

[giddyboy]

how do they measure systems loss?

care to share the formula?

as per ERC:

“System Loss” shall mean the difference between (kilowatt-hour) kWh purchased and/or generated and kWh sold by a Distribution Utility (DU) expressed as a percentage of kWh purchased and/or generated.

in simple terms: Systems Loss (%) = [(kwh purchased - kwh sold) / kwh purchased] x 100

in specific terms: SLR = (AGC * U) + (ATR * U)

http://www.erc.gov.ph/pdf/rev%20amen...0_11_16_06.pdf

ARTICLE IV
ADJUSTMENT OF THE SYSTEM LOSS RATE

Section 1. Adjustment Formula – DUs shall calculate the new System Loss

Rates based on the following formula:

SLR = (AGC * U) + (ATR * U)

Where:
SLR = System Loss Rate
AGC = Adjusted Generation Cost calculated in accordance with Article III
ATR = Average Transmission Rate (ATR) in Peso per kWh, computed as Transmission Costs per Unbundling Decision divided by the Annualized Sales in kWh or the new transmission rates computed based on TRAM.
U = Gross Up Factor = (% SL / [1- Actual%System Loss])

The %SL is based on:
a) the actual Systems Loss or the Systems Loss cap, whichever is lower, plus
b) actual company use or the company use cap of 1%, whichever is lower.

The actual System Loss and company use are based on the average of the most
recent twelve (12) month figures for which information is available. Actual System
Loss, for DUs where different system loss charges were granted for each of their
respective customer classes in the Unbundling Decision, shall be calculated on an
individual customer class level with the requisite reliable information to support
individual System Loss Rates.

[giddyboy]

10 reasons why electricity bills are high

source: The Freedom from Debt Coalition (FDC)

1. The ERC allows MERALCO, other distribution utilities (DUs) and the Transco to earn over and above what used to be the statutory return on rate base of 8-12%.

2. The Arroyo gov't wants to attract private investors to purchase NPC’s assets, and for the assets to become attractive, electricity rates have to be high.

3. The Arroyo gov't did not renegotiate the contracts with NPC’s independent power producers or IPPs. These contracts require NPC to purchase electricity whether or not these are actually generated or dispatched, and to supply fuel to IPPs that are in operation.

4. EPIRA allows MERALCO to purchase at most half of its electricity requirements from its sister companies or IPPs. Besides the problem of NPC with the IPPs, we have the problem of MERALCO’s contracts directly with its own IPPs.

5. High electricity prices breed inefficiencies, which further raise the cost of electricity. The power sector is inherently inefficient. Average capacity utilization of Transco’s transmission lines, according to an ADB report, is only at 12%.

6. Other ERC decisions have rendered the cost of electricity high. One such decision is the ERC's dismissal of the Power Sector Assets and Liabilities Management Corporation (PSALM) market abuse case alleged by the Philippine Electricity Market Corporation (PEMC), the operator of the Wholesale Electricity Spot Market (WESM).

7. EPIRA-mandated removal of subsidies. Following the logic of privatization and market-reforms, EPIRA states that instruments such as cross-subsidies which distort the “real" price of electricity should be removed.

8. Unfair & unjust practices of industry players that the ERC is ineffectual to regulate, or may even condone. ERC is known to have been powerless in providing more substantial solutions to recurrent abuse (overcharging and corporate malpractice) of DUs such as MERALCO.

9. Value Added Tax (VAT). Because of the ballooning fiscal deficit of the gov't, which is in part caused by guaranteed obligations of Government-Owned and -Controlled Corporations (GOCCs) like NPC, the 12% VAT now includes oil & electricity which was exempted before (zero-rated) in the previous consumption tax regime because it was categorized as “socially-sensitive" – raising its prices will translate to rising prices of other commodities.

10. Corruption and Mismanagement

[goryo13]

as per Juday's ad:

Judy Ann Santos System Loss Meralco Ad

mao kuno na ang System Loss og sa tinamban pa.. LOL

[giddyboy]

as per Juday's ad:

Judy Ann Santos System Loss Meralco Ad

mao kuno na ang System Loss og sa tinamban pa.. LOL

hahaha. katawa lng ko ani. LOL

Basahin mo ito Judy Ann...

In 2001, Mr. Tantoco said First Gas (Lopez owned) received P7.9 billion from Meralco when it delivered electricity worth P800 million.

In 2002 Meralco paid First Gas P7.4 billion when the company delivered electricity worth P3.8 billion, he added.

Mr. Tantoco also said that the costs of undelivered electricity were passed on to the customers.

This was confirmed by Meralco EVP Ricardo V. Buencamino.

"She allowed herself to be the tool of Meralco. She should have known better"---Gabriela Rep Luzviminda Iligan

Nanawagan kahapon ang Volunteers against Crime and Corruption (VACC) sa madla na iboykot ang artistang c Judy Ann dahil sa lantarang pag panig nito sa umano'y mga katiwalian sa Meralco.

"malaking kasinungalingan" ang pag aanunsyo sa aktres sa radyo at telebisyon. ---VACC chairman

"Juday may face Congress for Meralco ad"...ngano ni-enter. LOL

[giddyboy]

Enrile twits actress Judy Ann Santos for Meralco ad

MANILA, Philippines -- Actress Judy Ann Santos took another broadside Thursday for the radio and television advertisement justifying why the Manila Electric Co. (Meralco) passes on its systems loss to consumers, this time from veteran Senator Juan Ponce Enrile.

"Ang hirap naman kay Judy Ann, di niya naintindihan pinasukan nya. Kawawa naman [That's the problem with Judy Ann, she entered something she doesn't understand. Poor her]," Enrile said.

In the ad, Santos compares electricity to ice that melts as it is transferred from store to store to illustrate why the systems loss is charged to consumers.

Santos is a contract artist of the ABS-CBN network, owned by the Lopez family, which also owns majority shares of Meralco.

Enrile, in an interview over radio station dzBB, said electricity cannot be compared to ice because electricity is delivered straight to the consumer's home while ice is bought at the ice plant.

Enrile twits actress Judy Ann Santos for Meralco ad - INQUIRER.net, Philippine News for Filipinos

[giddyboy]

..."Alfie Lorenzo (Juday's manager) explained that the creators of the commercial, which is being aired over television and radio, signed Judy Ann for the advisory because they believe that she could “soften the anger of the people.”

“Iyong galit ng mga tao sa Meralco, baka naman sa kaniya mapunta at magtagumpay na sila na mapabagsak si Judy Ann, so may pag-asa na silang mapasikat ang ibang artista nila,” he explained."
---Asian news, Meralco Powers Judy Ann

WHAT DO U THINK?

[cmac]

Enrile is correct...Judy Ann Santos does not know what she has gotten herself into. Yes, she may have good intentions but clearly, Meralco is using her popular image to sway the people's opinion. But I'm also not in favor of the government taking over meralco because there would be monopoly.

Bahala na kung kinsa mo take over basta kay efficient and cheap ang kuryente.

My last bill:
-Total amount payed: 3,073.00
-System Loss Charge: 304.00 (10%, ouch!)

[LytSlpr]

@cmac:

mga ana sad ang percentage ang ako gibayran sa una. between 6-7K man ako bill mao na ako systems loss mga 600-700 pud. wa pay labot ang VAT ana ug other incidental charges.