Manila Electric Company (Meralco) customers will pay more this month to settle their power bills as the power distributor announced an increase due to increased generation rates.
In an advisory issued on Monday, July 15, Meralco announced that rates will rise by P2.1496 to P11.6012 per kWh in July, up from P9.4516 per kWh in the previous month.
This corresponds to a roughly P430 increase for household users who use 200 kWh.
The company attributed this upward adjustment to the “higher generation charge (which increased by P2.0021 per kWh) as power costs normalized following artificially low rates last month.”
“We again appeal for the understanding of our customers over the delayed bills as we sought guidance from the ERC on the implementation of this month’s rate adjustment,” Meralco vice president and head of corporate communications Joe Zaldarriaga said.
“Rest assured that Meralco will adjust the due dates to give our customers enough time to settle their bills,” he added.
The ERC granted Meralco and other companies’ request for a staggered collection of around P500 million in May generation costs in four equal monthly installments through September 2024.
July saw a P6.6370 per kWh increase in WESM rates, which reflected the recovery of a portion of the deferred WESM costs from the May supply month. A decrease in the Luzon grid’s average demand somewhat countered this.
Due to increased fuel costs, independent power producers (IPPS) fees increased by P0.4392 per kWh, while power supply agreements (PSAs) fees increased by P0.353 per kWh.
Conversely, because there were no reserve market settlement fees in June, which affected the ancillary service prices, transmission charges decreased by P0.155 per kWh. The net increase in taxes and other costs per kWh was P0.3025.
Electric distribution networks are built, run, and maintained by Meralco throughout the towns and cities of Bulacan, Cavite, Metro Manila, and Rizal, as well as in a few locations within the provinces of Batangas, Laguna, Pampanga, and Quezon.
Vantage Energy Solutions and Management Inc. and MeridianX Inc., which serve as retail electricity suppliers in Luzon and the Visayas, are considered subsidiaries and associates of the company. (TCSP)
