Negosyante News

April 19, 2025 12:02 pm

Ex-Bayan Muna Lawmaker Slams Meralco Rate Hike Amid Summer Power Demand


Former Bayan Muna representative Carlos Zarate has criticized the recent power rate increase by the Manila Electric Company (Meralco), calling it “unjustifiable,” especially as electricity consumption spikes during the scorching summer months.

“This is yet another burden for consumers to carry, especially in this extreme heat when electricity usage is high and workers and the poor are struggling,” Zarate said on Tuesday.

Meralco earlier announced a 72-centavo hike per kilowatt-hour (kWh) for April, which could result in a P144 increase in the monthly bill for households consuming 200 kWh.

The rise was attributed mainly to the spike in generation charges, particularly from the Wholesale Electricity Spot Market (WESM), where rates surged by P0.7278 per kWh.

Zarate expressed concern over Meralco’s increasing dependence on WESM, warning that this exposes consumers to possible manipulation by energy traders. “WESM should be a last resort. Its role in the power supply should not exceed 5%,” he said.

Meralco data shows that 23% of its supply recently came from WESM, with 33% from Independent Power Producers and 44% from Power Supply Agreements.

The company also cited the yellow alert issued for the Luzon grid on March 5, which triggered a secondary price cap of 6.39%—a sign of high spot market prices at the time.

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