Meralco warns customers of rise in electric power bills in June

Manila Electric Co. (Meralco) customers are likely to see a rise in their electric power bills in June following a surge in spot market prices, an official from the company said on Friday. 

“Based on initial projections, there may be an upward pressure on the generation charge for the month of June 2021 due to observed increase in WESM (wholesale electricity spot market) prices,” said Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga, referring to the spike in power prices in the WESM this month.

The market operator previously reported that the average spot market price more than doubled in May, reaching ₱7.72 per kilowatt-hour (kWh) from ₱3.85 in April due to a surge in demand and supply disruptions. 

“WESM prices were persistently high for extended periods triggering the secondary price cap (a price-mitigating mechanism that limits high market prices) on May 4-7 and 20-22,” added Zaldarriaga.

Zaldarriaga also noted the rise in temperatures and economic activity, noting that the Luzon grid hit a new peak of over 11,500 MW this month.  

“Average capacity on outage remained at the 3,000 MW level and the grid was placed on Yellow Alert on May 5, due to insufficient operating reserves,” said Zaldarriaga.  

A yellow alert is issued when reserves fall below ideal levels. This may be upgraded to a red alert when the possibility of power interruptions occurs.

SOURCE: Business World