Meralco hikes power rates this month

November 07, 2018

THE Manila Electric Company (Meralco) announced that after two straight months of reduction, they will implement a P0.1135 per kilowatt hour (kWh) increase in electric bills this month.

In a statement issued by Meralco on Wednesday, this will mean an increase of around P23 in the total bill of a typical household consuming 200kWh.

Last September and October P0.25 per kWh overall electricity rates slightly increased to P10.0901 per kWh this month from last month’s P9.9766 per kWh.

Since April this year, electricity rates registered a net decrease of P0.46 per kWh. From P5.1908 per kWh last month, the generation charge for November went up to P5.2725 per kWh, an increase of P0.0817 per kWh.

The increase in the generation charge is mainly the result of a P1.3545 per kWh increase  in charges from the Wholesale Electricity Spot Market (WESM).  WESM charges went up due to higher power demand in Luzon resulting from warmer temperature in October.

The share of WESM purchases to Meralco’s total requirement this month was 16.6%.

Meanwhile, the cost of power from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) decreased by P0.1450 per kWh and P0.5611 per kWh, respectively.

A stronger peso offset an increase due to higher Malampaya natural gas prices as a result of the quarterly repricing to reflect recent movement of crude oil prices in the world market. 

Power plants using Malampaya natural gas -- i.e., First Gas-Sta. Rita, First Gas-San Lorenzo, First NatGas-San Gabriel, and South Premiere-Ilijan -- provided 61% of Meralco’s supply needs.

Meralco’s distribution, supply and metering charges, meanwhile, have remained unchanged for 40 months, after these registered reductions in July 2015.

Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges.

Taxes and other public policy charges like the FIT-All rate are remitted to the government.