Manila Electric Co., the listed power distributor whose service area generates half of the country’s economic output, said Monday power rates in August will rise by P0.0327 per kiloWatt-hour, lifting overall rate for a typical household to P11.6339 a kWh.
Meralco, as the power distributor is widely known, said the increase of P0.1086/kWH in the transmission charges due to higher costs imposed by the grid operator for ancillary services.
For residential customers consuming 200 kWh, this adjustment translates to an approximate increase of P7 in their monthly electricity bill.
Meralco said the increase in transmission charges offset a P0.0503 per kWh reduction in the generation charge coming from Independent Power Producers, which fell by P0.2974 per kWh. The reduction was due to an increase in IPP dispatch and the appreciation of the Philippine peso, which affected IPP costs denominated in U.S. dollars.
Wholesale Electricity Spot Market prices also decreased due to a reduction in Luzon’s average peak demand by 690 megaWatt. The secondary price cap was triggered only 2.3 percent of the time in July, down from 6.6 percent previously. However, WESM charges saw a P0.5940 per kWh increase due to the inclusion of deferred costs from May, as ordered by the Energy Regulatory Commission.
Charges from Power Supply Agreements increased by P0.0421 per kWh, primarily due to higher fuel-related costs. For the period, IPPs, WESM, and PSAs together accounted for 33 percent, 27 percent, and 40 percent of Meralco’s total energy requirements, respectively.
Meralco has alerted customers to a potential increase in generation costs from First Gas – Sta. Rita and San Lorenzo, which utilize Malampaya gas. The recent expiration of the old gas sale and purchase agreement means that the supply of Malampaya gas is now governed by a new agreement, pending regulatory approval. The application of the new pricing formula could lead to higher generation charges once approved.
The Universal Charge for Missionary Electrification decreased by P0.0433 per kWh following the completion of the ERC-approved true-up rate recovery. Conversely, taxes and other charges saw a net increase of P0.0177 per kWh.
Meralco’s distribution charge remains unchanged since a P0.0360 per kWh reduction in August 2022.
