OVER EIGHT MILLION customers served by Manila Electric Co. (Meralco) will face higher bills this June, as the power distributor raises electricity rates due to higher generation charges.
The overall electricity rate is set to increase by P0.1488 per kilowatt-hour (kWh) to P14.4833 per kWh this month from P14.3345 per kWh in May, Meralco said in a statement on Thursday.
For households consuming 200 kWh, the adjustment translates to an increase of about P30 in monthly electricity bills. Those consuming 300 kWh, 400 kWh, and 500 kWh will pay an additional P45, P60, and P74, respectively.
Meralco Spokesperson Joe R. Zaldarriaga attributed the rate hike to higher generation charges, which increased by P0.2762 per kWh month on month to P9.0704 per kWh.
The upward adjustment in generation charge was driven by the increase in Wholesale Electricity Spot Market (WESM) prices to P7.0281 per kWh.
This was offset by lower line rental and other charges following the lifting of the suspension of WESM operations on May 1.
“There was a limitation in generation following the tripping of several transmission lines. That is the reason for the spike in prices in the WESM,” Mr. Zaldarriaga said in Filipino.
Last month, the Luzon grid was placed under a series of red and yellow alerts due to the unavailability of some power plants and tripping of transmission lines, triggering power interruptions in some areas.
Meanwhile, charges from power supply agreements (PSAs) increased by P0.0941 per kWh, mainly due to peso deprecation that affected 54% of the costs and higher world market prices for coal and liquefied natural gas.
On May 29, the peso lost 10.5 centavos to close at P61.59 against the dollar, from P61.485 on April 30, according to data from the Bankers Association of the Philippines.
Meralco said that charges from the supply procured from major gas-fired power plants in Batangas declined by P0.1569 per kWh due to improved average dispatch, offsetting the impact of higher fuel costs.
The overall rate hike this month was tempered by the transmission charge, which decreased by P0.1525 per kWh.
Taxes and other charges, meanwhile, had a net increase of P0.0251 per kWh.
Mr. Zaldarriaga said customers continue to benefit from Meralco’s ongoing refund equivalent to P0.4278 per kWh for residential customers.
“Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively; while taxes, universal charges, and feed-in tariff allowance are all remitted to the government,” Meralco said.
The distribution utility’s charge, on the other hand, remained unchanged since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022.
Meralco said that the “significantly higher consumption” of customers in May due to extreme heat will have an impact on their June billing statement.
“While there is an increase in electricity rates this month, elevated consumption patterns observed in May is also a major factor that could drive higher power bills of customers,” Mr. Zaldarriaga said.
As the onset of the rainy season has been declared, the Meralco official said that consumption may decrease due to cooler temperatures.
“We can already feel that the weather is improving somewhat, at least in terms of temperature levels. There is a possibility that, because of lower consumption, customers’ bills for the July billing period may be lower. However, that will still depend on their actual consumption,” Mr. Zaldarriaga said.
Meralco is the country’s largest private electric distribution utility, serving more than 8.2 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
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