Meralco raises electricity rates for November

Manila Electric Co. (Meralco) raised its rates for November by  P0.0844 per kilo watt hour (kWh), bringing the overall electricity rate for a typical household to P9.9472 per kWh from the previous month’s P9.8628 per kWh.

For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of about P17 in their total electricity bill.

In a statement, Meralco said the increase was mainly due to generation charge, which went up by P0.0725 to P6.9917 from P6.9192 per kWh.

Charges from Power Supply Agreements (PSAs) rose by P0.2711 per kWh largely due to the scheduled maintenance outage of First Natgas-San Gabriel plant from Oct 1 to 14.  This was mitigated by lower charges from Independent Power Producers (IPPs) and the Wholesale Electricity Spot Market (WESM).

The P0.1520 per kWh decrease in IPP charges was primarily due to a stronger peso, which affected 99 percent of IPP costs, and the reduced use of more expensive alternative fuel by First Gas-Sta. Rita. Malampaya natural gas prices remained stable following its quarterly repricing that reflected recent movements in international crude oil prices.

Meanwhile, WESM charges went down by P0.7959 per kWh with fewer instances of the secondary price cap imposition. In October, the secondary price cap was triggered 51.64 percent of the time, down from 55.16 percent in the preceding month.

PSAs, IPPs and WESM accounted for 49 percent, 45 percent, and 6 percent, respectively, of Meralco’s total energy requirement for the period.

Transmission, taxes, and other charges for residential customers also increased by P0.0119 per kWh.

Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-In Tariff Allowance (FIT-All) are all remitted to the government.

Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022. In addition, the four ongoing distribution-related refunds, equivalent to a total of P1.8009 per kWh for residential customers, continue to temper customers’ monthly bills.

One of the four refunds, equivalent to P0.4669 per kWh for residential customers, is expected to be completed this November. The other three are expected to be fully refunded by December 2022, January 2023, and My 2023 and the impact will subsequently be felt in succeeding billing periods.