Arya News - Manila Electric Co. (Meralco) said the increase in generation charges was also caused by the weakening of the peso against the US dollar, affecting dollar-denominated supply deals.
MANILA – Consumers should expect electricity rates to increase by P0.3191 per kilowatt-hour (kWh) this month due to higher generation costs, the Manila Electric Co. (Meralco) said on Tuesday.
This means that residential customers consuming 200 kWh will have to pay an additional P64 in their power bills. The overall rate for a typical household now stands at P15.0615 per kWh, up from P14.7424 per kWh a month ago.
Meralco blamed this upward adjustment on more expensive generation charges triggered by elevated fuel costs, which rose by P0.4973 per kWh. Global oil prices remained on the higher side due to the monthslong war in the Middle East, a major oil-producing region.
The power distributor said the increase in generation charges was also caused by the weakening of the peso against the US dollar, affecting dollar-denominated supply deals.
Ample supply
Spot market charges also surged by P3.5167 per kWh due to thin power supply in the Luzon grid last month. Charges from power supply agreements dipped by P0.7567 per kWh while charges from the National Grid Corp. of the Philippines also fell by P0.1384 per kWh on lower charges from the reserve market.
Meanwhile, Meralco said it was “ready” to impose its first distribution rate increase in 15 years that was recently approved by the Energy Regulatory Commission (ERC).
The commission gave the go-ahead for an average distribution rate of P1.48 per kWh, higher than Meralco’s current rate of P1.35 per kWh.
“We believe that this will allow Meralco to move forward with greater clarity as we pursue investments and initiatives to modernize our distribution network and enhance service delivery,” said Jose Ronald Valles, Meralco senior vice president and head of Regulatory Management.
Meralco has yet to receive a copy of the ERC decision.
Amid the onset of Super El Niño, the country’s largest power distributor said it has “contracted sufficient supply” for its more than 8.3 million consumers and is conducting maintenance of its facilities.
Meralco delivers electricity to Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal and parts of Laguna, Batangas, Pampanga and Quezon.