Meralco rates up by P0.23/kWh in October

MANILA, Philippines, October 16 ------ The Manila Electric Co. (Meralco) is hiking power rates by P0.2331 per kilowatt-hour this month due to higher generation costs, bringing the overall rate to P13.3182 per kWh. The adjustment translates to an increase of about P47 in the electricity bills of typical households consuming 200 kWh.

At a press briefing, Meralco spokesman Joe Zaldarriaga said the rate hike was due to a P0.19 per kWh rise in generation charges, or the cost of power procured from energy suppliers. Charges from power supply agreements (PSAs) and independent power producers (IPPs) both increased due to peso depreciation, while those from the Wholesale Electricity Spot Market (WESM) went down amid the improved supply-demand condition.

This month’s generation charge also reflects the impact of the interim extension of Meralco’s 1,000-megawatt power purchase agreement, as approved by the Energy Regulatory Commission. The IPPs, PSAs and WESM, respectively, accounted for 21 percent, 74 percent and five percent of the company’s total energy requirement for the period. Transmission charges, or the cost of transporting electricity from power plants to distribution systems, were higher by P0.0114 per kWh due to increased wheeling rates. Similarly, taxes and other charges registered a total increase of P0.0314 per kWh.

Meralco remits taxes and other charges to the government, while it pays pass-through charges for generation and transmission to power suppliers and the grid operator. The distribution charge, the only portion that goes to Meralco, stood at P0.036 per kWh. Softening the blow of this month’s rate hike is the ongoing implementation of a refund equivalent to around P0.2024 per kWh for residential customers.

With the recent earthquakes across the country, Meralco has assured its eight million customers that it is actively implementing measures to strengthen the resilience of its distribution network. “First and foremost, we are investing heavily in our distribution resiliency program. We have continuously upgraded all our facilities – from poles to wires to substations,” Zaldarriaga said.

Source: philstar.com