Meralco power rates up in June
MANILA, Philippines — Households and businesses in areas served by Manila Electric Co. (Meralco) can expect to see higher power bills in June after the power distributor paid more for electricity it sold to consumers.
In a statement on Friday, Meralco said that its overall rate for a typical household rose by P0.3982 per kWh to P10.4612 per kWh after paying a higher generation charge mainly caused by increased fuel costs.
This means those that consume 200 kWh will pay around P80 in their power bills this month. Meanwhile, those consuming 300 kWh, 400 kWh and 500 kWh will have to pay P119, P159 and P199 more, respectively.
Generation charge
Meralco's generation charge— which the company collects from customers to cover the costs of sourcing power from energy producers— hit P6.5590 per kWh, up by P0.3313 compared to the previous month after the firm noted higher fuel charges from gas plants supplying power to it, as well as increased prices of coal.
Fuel charges from First Gas power plants went up by 8% as they ramped up the use of the more expensive liquid fuel, as the Malampaya field is still unable to supply power to them due to an ongoing gas supply restriction.
Coal prices also went up by an average of 23%.
The surge in fuel costs contributed to higher charges from independent power producers (IPPs) and power supply agreements (PSAs), which increased by P0.6083 per kWh and P0.0859 per kWh, respectively.
Prices in the wholesale electricity spot market (WESM) also remained elevated after the secondary price cap, implemented when there are price spikes, was imposed twice in the supply month of April.
The WESM is a trading venue where companies like Meralco can buy power at higher costs compared to pre-agreed supply deals.
PSAs make up 48% of Meralco's power requirements, while IPPs and the WESM accounted for 40% and 12% of the company's energy needs, respectively.
Transmission and other fees
Meralco reported that its transmission charge slightly increased to P0.0083 per kWh, while taxes and other fees registered a net increase of P0.0586 per kWh.
The company said it is continuing the roll-out of distribution-related refunds for its customers, claiming that this has tempered the overall power rate.
Residential customers can expect a total refund of P0.9353 per kWh this month, it added.
Meralco is the largest private sector distribution utility in the country, which services 36 cities and 75 municipalities. It is also listed on the Philippine Stock Exchange.
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