Meralco rates higher next month

MANILA, Philippines —  Electricity rates in areas serviced by the Manila Electric Co. (Meralco) are set to increase this month by P0.5738 per kilowatt-hour, to P11.9168 per kwh from P11.3430 last month.

The increase is equivalent to P115 for households consuming 200 kwh, P172 for 300-kwh consumption, P230 for those consuming 400 kwh and P287 for 500 kwh.

This is the second time this year that Meralco is raising its rates. In January, Meralco adjusted its rates upward by P0.0846 per kwh due to higher spot market charges as some power plants in the Luzon grid went on scheduled maintenance shutdowns.

Meralco vice president and corporate communications head Joe Zaldarriaga attributed the rate increase mainly to higher generation charge.

“What drove the increase in the generation charge which churned up by P0.4552 per kilowatt-hour is possibly primarily due to higher cost of power from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs),” Zaldarriaga said at a press conference yesterday.

Higher fuel costs of First Gas-Sta. Rita and San Lorenzo power plants explained the P1.4764 per kwh IPP rate increase. This was a result of increased use of imported liquefied natural gas, which was 35 percent to 40 percent more expensive than Malampaya gas.

Meanwhile, PSA charges were up P0.1558 per kwh due to higher charges from Emergency PSAs as well as to peso depreciation. Eleven percent of PSA costs were dollar-dominated.

Meralco’s total energy requirement in the last month’s supply from IPPs and PSAs made up 32.8 percent and 46.8 percent, respectively.

Hikes in transmission and other charges by P0.1186 per kwh also contributed to upward adjustments in Meralco rates this month.

Zaldarriaga said they are expecting more rate increases in the dry season starting in March.

“Rise in electricity demand goes with rise in temperature,” he said.