Meralco hikes January power rates

Metro Manila (CNN Philippines, January 10) — The Manila Electric Company (Meralco) hiked its household power rate this January due to higher generation charge.

Meralco on Wednesday said it adjusted the rate by 8.46 centavos per kilowatt-hour (kWh), which will increase the overall rate for a typical household to ₱11.3430 per kWh from ₱11.2584 per kWh in December.

«For residential customers consuming 200 kWh, the adjustment is equivalent to a minimal increase of around ₱17 in their total electricity bill,» it said in its advisory.

Meralco said it adjusted rates upward as generation charge went up by 11.36 centavos to P6.6468 per kWh from P6.5332 per kWh in December due to “higher cost of power from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs).”

«WESM charges went up by ₱0.5611 per kWh due to higher average capacity on outage in the Luzon grid, which increased by around 418 MW. Charges from IPPs also increased by ₱0.1384 per kWh due to higher fuel costs of First Gas Sta. Rita and San Lorenzo resulting from the use of imported liquefied natural gas (LNG) in the testing and commissioning of its LNG terminal,» it added.

READ: Meralco cuts power rate in December

The higher generation charge was tempered by the 15.22-centavo per kWh reduction in charges from Power Supply Agreements (PSAs).

The reduction is attributed to lower charges from Emergency PSAs with Therma Luzon Inc. and South Premiere Power Corp. and higher excess energy deliveries from some PSAs priced at a discount.

Transmission and other charges registered a net reduction of 2.90 centavos per kWh.

The collection of the Feed-In Tariff Allowance at the rate of 3.64 centavos per kWh is still be suspended as directed by the Energy Regulatory Commission.

Meralco also reminded qualified beneficiaries of its Lifeline Rate Program to apply for the subsidy. Those who may apply include beneficiaries of the Pantawid Pamilyang Pilipino Program and other marginalized households with certification from their local Social Welfare and Development Office.