The Manila Electric Company (Meralco) has announced an electricity rate increase of P0.2834 per kilowatt-hour (kWh) this February, bringing the overall rate to P12.0262 per kWh from last month’s P11.7428 per kWh.
For households consuming 200 kWh, this adjustment means an additional P57 on their total electricity bill this month.
The primary reason for this increase is the higher generation charge, which rose by P0.3845 per kWh due to higher costs from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs).
- Independent Power Producers (IPPs): Charges surged by P0.8355 per kWh due to several factors:
- Lower power plant dispatch, leading to reduced efficiency.
- The weakening of the Peso impacted 97% of dollar-denominated IPP costs.
- Increased liquefied natural gas (LNG) terminal fees for First Gas Sta. Rita and San Lorenzo.
- Scheduled maintenance shutdown of Quezon Power in January as part of the Department of Energy’s Grid Operating and Maintenance Program.
- Power Supply Agreements (PSAs): Costs also climbed by P0.0837 per kWh, largely due to the Peso depreciation, which affected 61% of PSA expenses.
WESM helps mitigate cost increases
Despite the increase in generation charge, lower costs from the Wholesale Electricity Spot Market (WESM) provided some relief. WESM charges dropped by P0.3005 per kWh, as the Luzon grid experienced:
- A reduction in average demand by 585 MW.
- A decline in peak demand by 803 MW.
- A net increase of 612 MW in available capacity despite some outages.
In terms of power sourcing, Meralco’s energy supply for the billing period came from:
- PSAs: 43%
- WESM: 28%
- IPPs: 29%
Minimal adjustments in transmission and other charges
- The transmission charge for residential customers saw a slight decrease of P0.0013 per kWh.
- However, taxes and other pass-through charges increased by P0.1289 per kWh, partly due to an Energy Regulatory Commission (ERC)-approved Universal Charge-Missionary Electrification rate hike of P0.0171 per kWh.
- This month’s rates also reflect two ERC-ordered downward rate adjustments:
- P0.2264 per kWh (one-time adjustment for regulatory reset fees).
- P0.0023 per kWh (additional downward correction).
Meralco’s distribution charge remains unchanged.
Meralco clarified that its distribution charge has not increased since August 2022, when P0.0360 was lowered per kWh for residential consumers.
With the dry season approaching, when electricity consumption typically surges, Meralco encourages customers to take energy-saving measures to manage their bills.
Meralco Vice President and Corporate Communications Head Joe R. Zaldarriaga advised, “We reiterate our call to all our customers to continue practicing energy efficiency as a way of life, especially with the upcoming summer months.”
Some practical energy-saving tips include:
✅ Unplugging appliances when not in use.
✅ Ironing clothes in bulk to reduce electricity use.
✅ Avoid overfilling refrigerators for better cooling efficiency.
✅ Cleaning air conditioner filters regularly to maintain optimal performance.
✅ Switching to LED bulbs for lighting efficiency.
Customers can use the Meralco Appliance Calculator, which provides real-time data on appliance energy consumption, to better control their electricity usage.
How to reach Meralco for concerns
Customers needing assistance can contact Meralco through:
📱 My Meralco App
🌐 Social Media: Facebook | X (Twitter)
📩 Text: 0920-9716211 | 0917-5516211
📞 Meralco Hotline: 16211 | 8631-1111
As the generation charge plays a significant role in fluctuating electricity rates, Meralco encourages consumers to stay informed and proactive in managing their power usage.