MANILA, Philippines — The Manila Electric Company (Meralco) on Monday said there will be an increase of P2.1496 per kilowatt-hour (kWh) in electricity rates this July.
The adjustment increased power rates from P9.4516 per kWh in June to P11.6012 kWh in July.
In a statement on Monday, Meralco explained that there were higher generation charges following artificially low power rates in June.
“For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around P430 in their total electricity bill,” Merlaco said.
Power rates in June were lowered due to the staggered collection of generation costs from the Wholesale Electricity Spot Market (WESM). The Energy Regulatory Commission’s (ERC) ordered the staggered collection to ease the impact of generation costs on consumers.
However, Merlaco said that power rates have since normalized with WESM charges reflecting the actual cost, adding that it will also collect deferred charges.
“We again appeal for the understanding of our customers over the delayed bills as we sought guidance from the ERC on the implementation of this month’s rate adjustment. Rest assured that Meralco will adjust the due dates to give our customers enough time to settle their bills,” Joe Zaldarriaga, Meralco vice president and head of Corporate Communications, said in a statement.
According to the electricity concessionaire, the generation charge has increased by P2.0021 per kWh, with the WESM hiking up to P6.6370 per kWh to recover the portion of deferred from May’s supply month.
Independent Power Producers (IPPs) also increased rates by P0.4392 per kWh due to higher fuel costs and lowered average plant dispatch, said Meralco. Power Supply Agreements charges also hiked by P0.3530 per kWh, while taxes and other charges had a net increase of P0.3025 per kWh.
Merlaco said that transmission charges decreased by P0.1550 per kWh since there were no reserve market settlement charges, while the company’s distribution charge remains unchanged.
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