The cost of electricity within the Manila Electric Co. (Meralco) franchise area is seen higher in September. Initial indications point to a higher generation charge during the period.
“Although we have yet to receive the final billings from our suppliers, there may be upward pressure on the generation charge this month. This is expected to be driven by higher fuel prices in the world market during the supply month. The depreciation of the peso against the US dollar is expected to have an impact as well on our suppliers’ charges for the incoming billing month,” said Joe Zaldarriaga, Meralco vice president and head of corporate communications.
But according to him, Meralco is hopeful the increase is dampened by lower charges at the Wholesale Electricity Spot Market (WESM) as a result of lower demand and lower power outage during the period.
Only in August, Meralco implemented a P0.2908 per kilowatt-hour (kWh) reduction due to lower generation charges made possible by cheaper power from both the WESM and from power supply agreement (PSA) companies.
That adjustment redounds to a reduction of around P58 in the bill of a residential customer consuming 200 kWh a month, bringing the month’s power rate to P10.8991 per kWh from the previous P11.1899 per kWh.
