Meralco customers told to expect hike in Feb. billing

MANILA, Philippines—Customers of Manila Electric Co., the country’s biggest power distributor, may expect a hike in their electricity bills this month, as the cost of power sourced from its suppliers increased in January.

“Indications are that there’ll be a slight increase (in electricity bills) although we don’t expect that to fully offset the 32-centavo-per kilowatt-hour cumulative reduction we say in December and January [this year],” Larry Fernandez, head of utility economics at Meralco, explained in an interview.

Fernandez disclosed that the price of power sourced from the wholesale electricity spot market has been trending up, while fuel costs—specifically natural gas and coal—are likewise inching up.

Meanwhile, state-run National Power Corp. (Napocor) has already shifted to its “dry season” rates, which are more expensive than the rainy-season rates, he further revealed.

The distribution utility is expected to announce the final generation rates for February within the week.

Last month, Meralco customers enjoyed a 5-centavo-per-kWh reduction in their electricity bills as the generation charge fell to P5.46 per kWh. The reduction in January was attributed to the decline in the cost of WESM purchases, as brought about by the stability in fuel supply and cooler temperatures.

Meralco again stressed that the generation charge was entirely a pass-through charge and did not accrue or go to Meralco. The cost of electricity sold by the generating companies could move from month to month based on many factors beyond its control, among them fuel prices, the dispatch of the independent power producers, the foreign exchange rate and WESM prices.—Amy R. Remo