Manila Electric Co. (Meralco) has warned of a potential rate increase for October due to the weaker performance of the Philippine peso against the US dollar. The company’s suppliers, many of which have dollar-denominated costs, are expected to raise their generation charges, affecting overall power prices in Meralco’s franchise area.
Meralco vice president for corporate communications, Joe Zaldarriaga, explained that independent power producers (IPPs) and power supply agreements’ (PSAs) costs, which make up a significant portion of the company’s supply, are largely dollar-based.
While the company anticipates higher charges, Zaldarriaga expressed hope that lower power prices from the Wholesale Electricity Spot Market (WESM) could help mitigate the overall impact on rates. Meralco is expected to announce its official rate adjustments for October within the week.
In September, Meralco implemented a slight reduction of P0.1852 per kWh, driven by lower generation costs, benefiting residential customers with a P37 cut in their bills. However, any increase this month could be a setback for businesses and households in Meralco’s service areas, which include Metro Manila, parts of Cavite, Rizal, Batangas, and other provinces.
