Following a reduction last month, the electric concessionaire Manila Electric Co. (Meralco) announced an upward adjustment for the month of October.
In an advisory on Monday, October 13, Meralco said that it will implement a rate increase of P0.2331 per kilowatt hour (kWh).
This increase brings the overall rate for a typical household to P13.3182 per kWh, up from P13.0851 per kWh in September.
For residential customers consuming an average of 200 kWh, this adjustment translates to an additional P47 in their total monthly electricity bill, according to Meralco.
Meralco attributed the rate hike to the generation charge, which rose by P0.1903 per kWh after having seen a P0.2603 per kWh reduction in the previous month.
The jump in the generation charge was primarily driven by the costs associated with independent power producers and power supply agreements, which increased by P0.3622 and P0.3567 per kWh, respectively.
The electricity concessionaire also attributed this to the depreciation of the local currency against the US Dollar, which it said affected 99% of IPP costs and 48% of PSA costs.
The generation charge also reflected the impact of the interim extension of Meralco’s power purchase agreement with First Gas-Sta. Rita plant, as approved by the Energy Regulatory Commission.
The increase, meanwhile, was partially mitigated by a significant decrease in charges from the Wholesale Electricity Spot Market, or WESM, which went down by P2.0688 per kWh due to a decrease of about 1,000 megawatts in Luzon’s peak demand.
For the period, IPPs, PSAs and WESM accounted for 21%, 74% and 5%, respectively, of Meralco’s total energy requirement.
Transmission and other charges. Transmission, taxes and other pass-through charges collectively registered a total increase of P0.0428 per kWh.
Meralco clarified that pass-through charges for generation and transmission are remitted to power suppliers and the grid operator, while taxes and universal charges are remitted to the government.
Meralco said its distribution charge remains unchanged, seeing no movements since the P0.0360 per kWh reduction implemented in August 2022.
‘Customers also continue to benefit from the ongoing implementation of the distribution-related true-up adjustment, equivalent to a reduction of P0.2024 per kWh for residential customers,’ it said.