This came quickly.
The Manila Electric Co. (Meralco) on Tuesday announced a power rate increase for Metro Manila residents in February, reversing a brief drop in January. The adjustment, driven by higher generation charges, brings the overall rate to P12.0262 per kilowatt hour (kWh), up from P11.7428 per kWh in January. The hike translates to an additional P57 on the monthly electricity bill of households consuming 200 kWh.
Meralco attributed the adjustment to the P0.3845 per kWh increase in the generation charge imposed by independent power producers (IPPs) and from power supply agreements (PSAs). The weaker peso contributed to higher costs for the IPPs, which account for 29 percent of the region’s power supply, as well as for the PSAs, which make up 43 percent.
The IPPs imposed a substantial price increase of P0.8355 per kWh as 97 percent of their costs are US dollar-denominated, alongside higher liquefied natural gas terminal fees and reduced plant dispatches. The PSAs reflected a P0.0837 per kWh increase for exactly the same reasons.
But while generation charges climbed, a slight reduction in transmission costs—by P0.0013 per kWh—and a Wholesale Electricity Spot Market (WESM) cut in charges by P0.3005 per kWh helped cushion the overall rate increase.
Still, taxes and other pass-through charges increased by P0.1289 per kWh, driven by a rise in the universal charge-missionary electrification rates.
Meralco urged consumers to adopt energy-saving measures, such as unplugging unused appliances and using energy-efficient bulbs, to manage costs as the hotter months approach. The power distributor emphasized that Meralco rates remain tied only to distribution, supply, and metering charges, which have not changed since August 2022.
Nevertheless, t rate hike, though moderate, signals growing financial pressure on consumers, especially amid uncertain economic conditions, as inflation and currency volatility continue to impact electricity pricing.
