Consumers may need to further tighten their belts this month as Manila Electric Co. (Meralco) announced an increase in electricity rates by P0.6232 per kilowatt-hour (kWh) for January.
This brings the total electricity rate to P10.9001 per kWh this month from P10.2769 per kWh in December.
For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of about P125 in their total electricity bill.
The main drivers for the rate hike include the surge in the generation charge and the completion of the refunds mandated by the Energy Regulatory Commission (ERC).
This month’s generation charge rose by P0.3316 to P7.1291 per kWh as charges from independent power producers and the Wholesale Electricity Spot Market increased.
Meralco has completed a distribution-related refund equivalent to P0.2761 per kWh for residential customers.
Distribution charge remains unchanged since August last year and transmission rates dropped. On the other hand, taxes and other charges registered an upward adjustment.
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Meralco hikes electricity rate