The Manila Electric Company (Meralco) announced Tuesday a P0.2639 per kWh increase in electricity rates for March, raising the overall rate for typical households to P12.2901 per kWh from P12.0262 per kWh in February. For residential customers consuming 200 kWh, this translates to an additional P53 on their monthly bill.
The rate hike is primarily attributed to the conclusion of a one-time downward adjustment of P0.2264 per kWh on reset fees implemented last month, as well as a rise in transmission charges and the Feed-in Tariff Allowance (FIT-All). The transmission charge increased by P0.1294 per kWh, largely due to higher costs from the National Grid Corporation of the Philippines (NGCP), while the FIT-All rate rose by P0.0351 per kWh. Other charges, including taxes, also saw a slight increase of P0.0416 per kWh.
However, the increase was somewhat offset by a decrease in Meralco’s generation charge, which fell by P0.1686 per kWh to P7.0517 per kWh, due to lower costs from independent power producers (IPPs) and power supply agreements (PSAs), as well as a favorable exchange rate for dollar-denominated costs.
Despite the rate hike, Meralco’s distribution charge remained unchanged since a previous reduction in August 2022.
In addition to the rate adjustment, Meralco urged customers to observe electrical safety and practice energy efficiency, especially with the dry season approaching. The company highlighted fire safety measures and recommended energy-saving tips, including regular air conditioner maintenance and using LED lights to manage rising electricity consumption.
