Tight supply, weak peso hike Meralco rates in June

INQUIRER FILE PHOTO

MANILA, Philippines — Manila Electric Co. (Meralco) consumers must brace for higher power bills this month as the generation charge increased due to the tight supply in Luzon and the weakening of the peso.

In a media briefing on Thursday, Meralco vice president and head of corporate communications Joe Zaldarriaga said there will be an increase of P0.1488 per kilowatt hour (kWh) for the June rate.

This brings the overall rate for a typical household to P14.4833 per kWh this month from P14.3345 per kWh in May.

With this upward adjustment, households consuming 200 kWh will have to cough up an additional P30 to settle their power bills.

“While there is an increase in electricity rates this month, elevated consumption patterns observed in May are also a major factor that could drive higher power bills of customers,” Zaldarriaga said.

Blamed for the hike was the generation charge, which rose by 27 centavos per kWh to P9.0704 per kWh. Generation costs account for more than half of the bill.

READ: Meralco trims May power rates despite oil crisis

The power distributor said that prices at the Wholesale Electricity Spot Market climbed to P7.0281 per kWh amid the power strain recorded in the Luzon grid, particularly from May 13 to May 15.

As demand surged, even surpassing the 2024 level triggered by El Niño, limited generation worsened capacity and prompted a red alert call in the Luzon grid. The situation left hundreds of thousands of households in the dark due to power interruptions.

Three-day alert

“Here in Luzon, as we saw on May 13, 14, and 15, there was a series of red and yellow alerts, and that affected prices. That’s really how it works. When there is a supply constraint, it is reflected in the market,” Zaldarriaga said.

READ: Gatchalian wants to investigate power outages that affected Luzon, Visayas

“And when you buy from the market in that situation and that condition, that usually redounds to a higher cost,” he added.

Charges from power supply agreements likewise inched up by P0.0941 per kWh as the peso lost more ground against the dollar, affecting 54 percent of deals. The sector also recorded costlier prices for coal and liquefied natural gas.

Transmission charges, meanwhile, dropped by P0.1525 per kWh. /cb