Meralco rates up in January

Meralco rates up in January

MANILA – Households in franchise areas of Manila Electric Company (Meralco) that consume 200 kilowatt-hour (KWh) per month can expect increase of PHP125 in their January electricity bill.

This, as Meralco announced Tuesday an increment of PHP0.6232 per kWh this month, with power rates increasing to PHP10.9001 per kWh.

Meralco said power rates went up in January due to higher generation charges and the completion of the distribution-related refund.

“The generation charge went up by PHP0.3316 to PHP7.1291 from PHP6.7975 per kWh the previous month,” it said in a statement.

The distribution utility said charges from independent power producers (IPPS), including First Gas Sta. Rita and San Lorenzo, increased as they use more expensive alternative fuel due to insufficient supply of Malampaya natural gas.

IPPs shared 46 percent of Meralco’s power requirement in December 2022.

Meralco said the higher spot prices at the Wholesale Electricity Spot Market, which increased by PHP0.6808 per kWh, also triggered the increase this month.

“WESM energy share inched up to 9 percent this month from 7 percent the previous month. The suspension of the Power Supply Agreement (PSA) with South Premiere Power Corporation (SPPC) starting December 7, 2022 for 670-MW baseload supply following the implementation of a Court of Appeals Temporary Restraining Order prompted Meralco to partially source replacement power from WESM,” it said.

Moreover, Meralco said it completed the refund of P0.2761 per kWh, which also contributed to higher power rates this month.

“Two ongoing refunds totaling PHP1.0579 per kWh for residential customers are still being implemented by Meralco and continue to temper customers’ monthly bills. These refunds are expected to be completed by January 2023 and May 2023, and the impact will be felt in the succeeding billing periods — February 2023 and June 2023, respectively,” it added.

On the other hand, lower charges from PSAs, transmission charges, the suspension of the collection of Feed-In Tariff Allowance (FIT-All) and the peso appreciation mitigated the further increase in electricity bills for January. (PNA)

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