Meralco Increases November Electricity Rates

Consumers residing in areas serviced by Manila Electric Co. (Meralco), can expect an increase in their electricity bills for November due to a rise in generation charge.

In a statement released by Meralco, the overall rate for an average household increased by ₱0.0844 per kilowatt-hour (kWh). Last month the rate was at ₱9.8628 per kWh and for November it’s expected to hit ₱9.9471 per kWh.

This would indicate a ₱17 increase in the monthly electricity bill for a typical household that uses up to 200 kWh.

Meralco’s spokesperson, Joe R. Zaldriagga has mentioned that the hike in generation charges was due to an increase in charges from power supply agreements (PSAs).

Due to the scheduled maintenance outage of the First Natgas-San Gabriel plant last October 1 to 14, the PSA charges increased by ₱0.2711 per kWh. However, this was also offset by the lowered charges of the independent power producers (IPPs) and the Wholesale Electricity Spot Market (WESM).

According to Meralco, the IPP charges fell by ₱0.1520 per kWh because of the stronger peso, which comprised 99% of the costs of IPP, and lowering the usage of more expensive alternative fuel by First Gas – Sta. Rita.

After the quarterly repricing, Meralco has said that the Malampaya natural gas prices stabilized.

The largest share of Meralco’s total power requirements is supplied by PSAs at 49%, followed by IPPs at 45%, and then WESM at 6%.

Meralco Vice President and Head of Utility Economics, Lawrence S. Fernandez has stated that Meralco is targeting May 2023 to complete the distribution of refunds totaling ₱21.8 billion.

Source: Business World