Manila Electric Co., the country’s largest power disturber better known as Meralco, on Tuesday said power rates in November will be higher as generation charge increased due primarily to a depreciation of the peso against the U.S. dollar.
Meralco said its electricity rates for November will rise by P0.4274 per kilowatt-hour, lifting the rate for a typical household to P11.8569 per kWh, up from the previous month’s P11.4295 per kWh. For a typical residential customer that use 200 kWh a month, this adjustment will result in an increase of around P85 in his electricity bill for November.
The increase is primarily driven by higher generation charges, which saw a P0.2884 per kWh increase largely due to a weakened Philippine peso. The peso depreciated by P2 against the US dollar. This currency shift had a significant impact on the costs of power sourced from independent power producers and power supply agreements, which are dollar-denominated.
The charges from IPPs rose by P0.9392 per kWh, while PSA charges increased by P0.4295 per kWh. Additionally, the cost of liquefied natural gas terminal fees for the First Gas Sta. Rita and San Lorenzo plants contributed to the higher IPP charges. Meanwhile, the Wholesale Electricity Spot Market saw a modest increase of P0.0150 per kWh due to higher average demand in the Luzon grid and increased outages.
In addition to the generation charge, transmission and other charges also contributed to the overall rate increase. The transmission charge rose by P0.0724 per kWh due to higher ancillary service charges from the WESM Reserve Market. Taxes and other charges increased by P0.0666 per kWh, further pushing up the overall electricity bill.
Meralco said its distribution charge remains unchanged since the P0.0360 per kWh reduction in August 2022.
Despite the rate increase, Meralco is offering relief to storm-affected customers, in line with a directive from President Ferdinand Marcos Jr. and the Energy Regulatory Commission. Customers in areas declared a state of calamity, with a monthly consumption of less than 200 kWh, will be spared from disconnection until December 2024. They will also be eligible for installment payment arrangements for their electricity bills from October to December 2024.
Meralco has reiterated its commitment to supporting customers during difficult times, particularly after Severe Tropical Storm Kristine, which impacted several areas. Customers eligible for the payment arrangements are encouraged to visit Meralco Business Centers for assistance in processing their requests.
