Manila Electric Company (Meralco) customers should expect higher electricity bills this February, as the power distributor implemented a rate hike for the said month.
Meralco on Tuesday, February 11, announced a rate hike of P0.2834 per kilowatt-hour (kWh) for this month. For households using 200 kWh, this will result in an estimated P57 increase in their monthly bill.
This adjustment raises the total rate to P12.0262 per kWh, up from P11.7428 per kWh last month.
Meralco attributed the increase to a rise in the generation charge, which went up by P0.3845 per kWh due to higher costs from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs).
IPP charges rose by P0.8355 per kWh, driven by reduced plant output, a weaker peso, and increased liquefied natural gas (LNG) terminal fees from First Gas Sta. Rita and San Lorenzo. Scheduled maintenance at Quezon Power in January also contributed to the increase.
The peso’s depreciation further affected PSA charges, pushing them up by P0.0837 per kWh as 61% of these costs are dollar-denominated.
However, some relief came from the Wholesale Electricity Spot Market (WESM), where charges fell by P0.3005 per kWh due to reduced demand in the Luzon grid.
Meanwhile, transmission charges slightly decreased by P0.0013 per kWh, but this was offset by a P0.1289 per kWh rise in taxes and other pass-through fees, including higher Universal Charge-Missionary Electrification rates that the Energy Regulatory Commission (ERC) approved.
Meralco also noted that its distribution charge remains unchanged since the P0.0360 per kWh reduction implemented in August 2022. The company clarified that generation and transmission costs are paid directly to suppliers and the grid operator, while taxes and other regulatory fees are remitted to the government. (TCSP)
