The Manila Electric Company (Meralco) announced Wednesday an upward adjustment of P0.4201 per kWh in the October electricity rate, bringing the overall rate for a typical household to P11.8198 per kWh this month from P11.3997 per kWh in September.
For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around P84 in their total electricity bill.
Overall rate increase due to higher generation charge.
The generation charge for October went up by P0.3015 to P7.1267 per kWh from P6.8252 per kWh last month due to higher charges from independent power producers (IPPs) and power supply agreements (PSAs).
Charges from IPPs increased by P0.4599 per kWh mainly due to higher cost of fuel utilized by the First Gas plants. The persisting supply restriction of the Malampaya natural gas field compelled the 1,000 MW First Gas-Sta. Rita and 500 MW First Gas-San Lorenzo power plants to switch to more expensive alternative fuel to ensure supply continuity.
Charges from PSAs also went up by P0.1658 per kWh, partly because of the forced shutdown of the 420 MW First NatGas-San Gabriel power plant from September 18 to 24 due to the Malampaya gas supply restriction. Lower coal prices abated the increase in PSA charges.
Beginning 26 August 2023, Meralco implemented a second emergency PSA with South Premiere Power Corp. covering 330-MW base load supply to replace the terminated PSA with Sual Power Inc.
IPPs and PSAs accounted for 35 percent and 47 percent, respectively, of Meralco’s total energy requirement for the September supply month.
Charges from the Wholesale Electricity Spot Market (WESM) slightly increased by P0.0525 per kWh mainly due to adjustments. The supply situation in the Luzon grid improved last September as average demand and average capacity on outage were both lower, by around 165 MW and 315 MW, respectively.
Meralco sourced 18 percent of its total energy requirement from WESM for the period.
The transmission charge for residential customers increased by P0.0264 per kWh due to higher ancillary service charges. Because of the higher generation and transmission charges, taxes and other charges subsequently registered a net increase of P0.0661 per kWh.
Universal charges also registered a P0.0261 per kWh increase after the Energy Regulatory Commission (ERC) approved a higher universal charge for missionary electrification (UC-ME). The UC-ME went up from P0.1977 to P0.2238 per kWh.
Meanwhile, the collection of the feed-in tariff allowance (FIT-All), at the rate of P0.0364 per kWh, remains suspended as directed by the ERC.
Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively, while taxes, universal charges, and FIT-All are all remitted to the government.
Meralco’s distribution charge, meanwhile, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022.
Meralco also assured the public of its readiness for the 2023 Barangay and Sangguniang Kabataan Elections, with its crews on standby to respond to any electricity service concern for the 30 October polls.
Meralco has already inspected the electric facilities of close to 3,000 polling and canvassing centers, which include public schools and barangay halls, within its franchise area.
Inspection and maintenance of Meralco distribution facilities that are serving polling and canvassing centers are also ongoing to ensure reliable steady electricity service on election day.
The distribution utility has also trimmed trees and removed hazards that can obstruct power lines and prepared over 300 generator sets and nearly 800 flood lights on stand-by in case there will be an unexpected power interruption.
“Meralco will be on alert 24/7 to respond to any distribution related problem until the conclusion of the election process. Our crews will be deployed in strategic locations across its franchise area and will be ready to address any possible problem on electricity service,” Meralco spokesperson and vice president for corporate communications Joe Zaldarriaga said.
