Meralco hikes October electricity rate by 42 centavos per kWh

MANILA  -Power rates of distributor Manila Electric Co. (Meralco) went up for the second consecutive month in October by P0.4201 per kilowatt-hour (kWh), bringing the overall rate of a typical household to P11.8198 per kWh, the company said on Wednesday.

This translates to an increase of P84 in the total electricity bill of a customer consuming 200 kWh.

According to Meralco, this is due mainly to higher generation charges brought about by higher fees from power supply agreements (PSAs) and independent power producers (IPPs).

Generation charge, or the cost of power purchased from suppliers that accounts for more than 50 percent of the total bill, went up by P0.3015 per kWh to P7.1267 per kWh.

Charges from PSAs climbed by P0.1658 per kWh due to the seven-day forced shutdown of First Gen Corp.’s 420-megawatt (MW) San Gabriel gas-fired plant last month.

“The persisting supply restriction of the Malampaya natural gas field compelled the 1,000-MW Sta. Rita and 500-MW San Lorenzo power plants to switch to more expensive alternative fuel to ensure supply continuity,” Meralco said in a statement.

READ: Philippine natural gas future uncertain with Malampaya depletion

Charges from IPPs also increased by P0.4599 due to the Malampaya restrictions.

Higher charges from the Wholesale Electricity Spot Market—increasing slightly by P0.0525 per kWh—also triggered the increase this month.

Transmission charges likewise rose by P0.0264 per kWh due to higher ancillary service charges, Meralco said.

Last month, higher fuel prices and peso depreciation triggered an increase in Meralco’s electricity rate by P0.5006 per kWh for an overall increase of P100 in the total bill of a household consuming 200 kWh.