Meralco hikes Sept electricity rate by over 50 centavos/kWh

MERALCO  -Higher generation charges ended the three-month streak of declines in distributor Manila Electric Co.’s (Meralco) electricity rates, with the company announcing an increase this month by P0.5006 per kilowatt-hour (kWh), bringing the overall rate for a typical household to P11.3997 per kWh.

This translates to an increase of about P100 in the total electricity bill of a customer consuming 200 kWh, Meralco announced on Friday.

According to Meralco, the generation charge for September went up by P0.4323 per kWh to P6.8252 per kWh due to higher costs from power supply agreements (PSAs) and independent power producers (IPPs) as fuel prices surged.

Higher fuel prices and peso depreciation triggered an increase of P1.0362 per kWh in charges from PSAs.

These factors likewise resulted in a P0.4776-per-kWh increase in IPP charges, as supply restrictions in the Malampaya gas field led to “increased use of more expensive alternative fuel” by gas-fired power plants.

Spot market charges, meanwhile, went down by P0.5034 per kWh due to reductions in adjustments and other charges, Meralco said.

Transmission charge also had a slight reduction of P0.0081 per kWh after National Grid Corp. of the Philippines stopped collecting its 3-percent franchise tax from consumers, as directed by the Energy Regulatory Commission.

Last month, slow demand amid the rainy season pulled down Meralco’s electricity rate by P0.2908 per kWh.