The Manila Electric Co (Meralco) on Friday announced a P0.4883 per kilowatt-hour (kWh) increase in electricity rates for July, raising the overall rate to P12.6435/kWh from last month’s P12.1552/kWh. This follows two consecutive months of rate reductions totaling P0.8575/kWh, signaling a reversal that could significantly impact both households and businesses.
For a typical household consuming 200 kWh, this means an estimated P98 increase in the monthly bill. Meralco attributed the hike primarily to the P0.3407/kWh jump in the generation charge, driven by higher fuel costs, the weaker peso, and increased charges from power supply agreements (P0.4476/kWh) and independent power producers (P0.4992/kWh).
Although prices from the Wholesale Electricity Spot Market (WESM) dropped by P0.1703/kWh due to lower demand in Luzon, this was not enough to offset the overall increase. Transmission charges also rose by P0.0734/kWh, along with additional taxes and other charges totaling P0.0742/kWh.
Meralco emphasized that generation, transmission, and government charges are pass-through costs and not part of its earnings. The distribution charge remains unchanged at P1.3522/kWh since August 2022, and a P0.2024/kWh distribution refund continues to apply.
This rate hike adds pressure to consumers and businesses already facing rising operating costs, and may contribute to broader inflationary effects in the coming months.
