ERC sees additional 32-33 centavos per kWh in Meralco rates
Updated on August 16, 2024 at 10:19 a.m.
MANILA, Philippines — Consumers of Manila Electric Co. (Meralco) may need to tighten their belts as rates may remain elevated, with the Energy Regulatory Commission (ERC) allowing the power distributor to collect pass-through costs from its natural gas suppliers starting in October.
For July and August, Meralco imposed rate hikes due to the normalization of power costs and higher transmission charges.
An official earlier hinted that their customers may get slight relief come October as the collection of deferred Wholesale Electricity Spot Market costs would end by September.
READ: Meralco power rates up again in August
Article continues after this advertisementHowever, First Gas Power Corporation (FGPC) and FGP Corp. secured the ERC’s approval this week to recover the difference between the previously approved pass-through costs and the landed cost of liquefied natural gas (LNG) and the new Gas Sale Purchase Agreement (GSPA).
Article continues after this advertisementThis means Meralco has the go signal to implement adjusted rates from the gas plants.
Meralco and the two First Gen Corp.’s subsidiaries have an existing power supply contract.
According to ERC chairperson and chief executive officer Monalisa Dimalanta, an estimated 32 to 33 centavos per kilowatt-hour (kWh) may be added to Meralco consumers’ power bills for 12 months, beginning this October.
For households consuming 200 kWh, Dimalanta said they may see an increase of P66 for one month.
The ERC official, however, noted that the final amount would depend on the blend of fuel the companies will use, which they can source from indigenous gas, liquid fuel, and imported LNG.
“We confirm receipt of the Notice of Resolution from the Energy Regulatory Commission (ERC) approving the implementation of adjusted rates to cover the costs of First Gas plants supplying to Meralco,” the company said in a statement late Thursday.
“While we have yet to do the final computations, rest assured that Meralco will duly inform the ERC and public about the actual impact of this order on the power rates,” it added.
