Meralco hikes electricity rate by 46.2¢ per kWh
MANILA, Philippines — Manila Electric Co. on Tuesday announced a P0.4621 per kilowatt-hour increase in electricity rates for the May billing period.
This brings the overall rate to P11.4139 per kWh for May from P10.9518 per kWh in April, Meralco said in a statement on Tuesday.
For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of about P92 in their total electricity monthly bill, it said.
Driving this month’s rate increase was the generation charge which rose by P0.4455 per kWH due mainly to higher costs from the Wholesale Electricity Spot Market (WESM) and Power Supply Agreements (PSAs).
Charges from WESM went up by P1.7913 per kWh due to the tight supply condition in the Luzon grid during the April supply month as demand went up by 2,401 MW.
READ: Meralco cuts April electricity rate by nearly P1 per kilowatt-hour
Rates for supply under PSAs rose by P0.2871 per kWh due to lower excess energy deliveries of some PSAs, which were priced at a discount, and charges from an emergency PSA that covered Meralco’s supply requirements.
Peso depreciation, which affected 14 percent of PSA costs that were dollar-denominated, contributed to the increase.
Lower IPP charges
Tempering the increase in the generation charge was the P0.6942 per kWh reduction in charges from Independent Power Producers (IPPs) on the back of higher average IPP dispatch and lower fuel prices.
READ: Offline power plants affect 200,000 Meralco customers
Transmission fees, taxes, and other charges went up by P0.0166 per kWh while Meralco’s distribution charge remained unchanged since the P0.0360 per kWh reduction implemented in August 2022.
To help avoid power interruptions and accidents such as electrocution, Meralco called on the public anew to steer clear of power lines when flying kites or picking fruits from trees.
“We are appealing to our customers to refrain from flying kites and picking fruits near power lines since these can cause power interruptions and accidents,” Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga said.
