After a brief reprieve last month, consumers will once again see higher electricity bills. The Manila Electric Company (Meralco) announced an increase of P0.2331 per kilowatt-hour (kWh) for October, bringing the overall rate for a typical household to P13.3182 per kWh, up from P13.0851 per kWh in September.
For residential customers using 200 kWh, the hike translates to an additional P47 on their monthly bill.
Meralco attributed the increase primarily to a higher generation charge, which rose by P0.1903 per kWh after a significant drop last month. This was largely due to higher charges from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs), which went up by P0.3622 and P0.3567 per kWh, respectively. The utility said the depreciation of the peso against the US dollar played a key role, impacting 99 percent of IPP and 48 percent of PSA costs.
The October rate also includes the effect of the ERC-approved interim extension of Meralco’s agreement with the First Gas-Sta. Rita plant.
Helping cushion the increase were lower prices from the Wholesale Electricity Spot Market (WESM), which dropped P2.0688 per kWh due to reduced demand in Luzon.
Transmission, taxes, and other charges added another P0.0428 per kWh to the rate.
Meralco clarified that its distribution charge remains unchanged since its reduction in August 2022. Customers still benefit from a P0.2024 per kWh distribution-related true-up adjustment.
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