Meralco rates up in March billing

MANILA, Philippines — Energy utility provider Manila Electric Co. (Meralco) has increased electricity rates this March by P0.0229 per kilowatt-hour, marking the third increase this year. 

The adjustment brings the overall rate to P11.9397 per kwh from last month’s P11.9168 per kwh, with residential customers consuming 200 kwh expected to see an increase of P5 in their electricity bill. 

According to Meralco, the adjustment is attributed to the P0.3976 per kwh increase in the transmission charge due to higher ancillary service charges, which tripled this month and account for around 52 percent of total transmission costs. 

“This increase was tempered by a P0.3518 per kwh reduction in the generation charge,” Meralco declared. 

Meralco said on Wednesday that the electricity rate this March will decrease due to the resumption of operations of the San Buenaventura power plant after undergoing maintenance and lower wholesale electricity spot market (WESM) prices. 

Moreover, the initial estimation said rates will be lower due to the refund from last month’s charge, as ordered by the Energy Regulatory Commission. 

“Usually, if the reduction of generation charge is significant, the overall rates will decrease, but unfortunately… the increase of transmission charge is high,” Meralco vice president and head of corporate communications Joe Zaldarriaga said. 

This caused the initial effects of the generation charge to be “wiped out,” Zaldarriaga explained. 

“If this did not happen, the total electricity rates would have decreased,” he said. 

Meanwhile, charges from Power Supply Agreements (PSA) decreased by P0.3045 per kwh due to lower energy payments for the South Premier Power Corp. emergency PSAs and the resumption of operations of the San Buenaventura power plant. 

Charges from Independent Power Producers also decreased by P0.1443 per kwh, following deductions of incremental Malampaya gas costs for First Gas Power Corp.-Sta. Rita under a new gas sale and purchase agreement, said Meralco. 

This resulted in a generation charge decrease of P0.0447 per kwh and P0.0866 per kwh for the January and February supply months, respectively.

Moreover, WESM charges went down by