Higher Meralco rates looming this month

MANILA, Philippines — Customers of utility giant Manila Electric Co. (Meralco) are likely to see higher power rates this October amid a potential jump in generation charges.

“While we are still waiting for some billings from our suppliers to finalize the October electricity rate, indications point to a possible increase in generation charge this month,” Meralco spokesman Joe Zaldarriaga announced yesterday.

The generation charge, which accounts for over half of the electricity bill, covers the cost of power purchased by Meralco from energy suppliers and the Wholesale Electricity Spot Market (WESM).

Zaldarriaga said the weakening of the peso against the greenback pushed up charges from Meralco’s suppliers, whose costs are largely dollar-denominated.

“We are hopeful that these possible increases will be tempered by lower WESM prices as reported by IEMOP (Independent Electricity Market Operator of the Philippines),” he said.

System-wide WESM rates decreased by 33.8 percent to P3.04 per kilowatt-hour in September from the previous month’s P4.59 per kWh. This marks the lowest level in seven months or since February’s P2.73 per kWh.

Meralco sourced around six percent of its energy requirements last month from WESM. Power supply agreements and independent power producers accounted for 65 percent and 29 percent, respectively.

The company intends to announce its actual rate adjustment on Friday.

As the country’s largest power utility, Meralco serves over eight million customers in Metro Manila and nearby provinces.