A weaker peso, more expensive imported natural gas, and rising electricity demand pushed up Meralco’s power procurement costs, prompting a P0.4895 per kilowatt-hour (kWh) increase in electricity rates for November.
The adjustment brings the rate for a typical household to P15.5510 per kWh from P15.0615 in October. For a residential customer consuming 200 kWh, the increase translates to an additional P98 on the monthly electricity bill.
Generation charges accounted for most of the increase, climbing by P0.4344 per kWh amid higher costs from power suppliers, particularly natural gas-fired plants and the Wholesale Electricity Spot Market (WESM).
Charges from First Gas/Prime CoreGen surged by P2.9241 per kWh following the quarterly repricing of Malampaya natural gas and higher liquefied natural gas (LNG) prices. The plants also increased their LNG utilization from 24 percent to 44 percent to supplement Malampaya supply with imported gas.
The peso’s depreciation added to the burden, with about 86 percent of First Gas/Prime CoreGen’s costs denominated in US dollars.
WESM charges likewise rose by P4.3946 per kWh as average Luzon demand increased by about 769 megawatts amid warmer October temperatures. Meralco noted that temperatures were even higher than in October 2024, the last El Niño episode.
These increases were partly offset by a P0.2769 per
