DOE wants Meralco to explain power rate hike
The Department of Energy (DOE) has demanded an explanation from the Manila Electric Company (Meralco) regarding its electricity rate increase of P0.08 kilowatt per hour, which was set to be effective in February.
DOE Secretary Alfonso Cusi said he wanted to know how Meralco arrived at such a new rate, which the power distribution company attributed to the impending increase in fuel excise tax brought by the government’s new tax reform package, Radyo INQUIRER reported on Saturday.
Meralco said it would implement the P0.0808 power rate hike which would be effective in the customers’ February billing due to the Tax Reform for Acceleration and Inclusion (TRAIN) law, according to Radyo INQUIRER.
The power company cited excise tax rates in petroleum products such as diesel and coal used by power plants, and the re-imposition of value added tax in transmission charges, the report said.
The electricity rate increase would result into an additional P16.16 in the electricity bills of customers who consume an average of 200 kilowatts per hour in a month, according to the report. /jpv
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