Meralco rates likely up in February

MANILA, Philippines —   Higher pass-through charges are expected to push up Manila Electric Co. (Meralco)’s power rates this month.

“Although we have yet to receive the final billings from our suppliers, initial indications point to upward pressure on several pass-through charges,” Meralco spokesman Joe Zaldarriaga said yesterday.

He said generation charges, which make up over 50 percent of consumers’ power bills, could rise due to higher spot market prices in Luzon.

The Independent Electricity Market Operator of the Philippines earlier reported that Luzon spot prices went up amid tighter supply margins caused by forced outages of coal and natural gas units.

The Meralco official also cited the weakening peso as a factor driving higher generation costs, as most supplier fees are dollar-denominated.

“There is also a possible increase in transmission charges due to higher market prices for regulating and contingency reserves,” Zaldarriaga said.

Transmission charges, which account for about 10 percent of the total power bill, cover the cost of transporting electricity from power plants to distribution systems.

Another factor contributing to the potential Meralco rate hike is the implementation of new adjustments to the Universal Charge for Missionary Electrification, a non-bypassable fee that supports electrification in remote areas.

The new rate, as approved by the Energy Regulatory Commission, is equivalent to an additional P0.08 per kilowatt-hour for all on-grid power consumers.

“As these are still initial, the overall rate movement could still change,” Zaldarriaga noted.

Meralco, which serves over eight million customers across Metro Manila and nearby provinces, is set to announce its final February rate today.