Higher generation charges from the Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) went up by P0.9392 and P0.4295 per kWh, respectively, due to the depreciation of the peso, resulting in an upward adjustment of P0.4274 per kWh in the electricity rate this November.
In a press briefing, the Manila Electric Company (Meralco) said the P0.2884 per kWh increase in the generation charge is driving this month’s overall rate increase.
“This will bring the overall rate for a typical household to P11.8569 per kWh from the previous month’s P11.4295 per kWh,” Meralco said in a statement. For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around P85 in their monthly electricity bill.”
It said that P2 weakened the peso against the US Dollar, affecting 98% of IPP costs and 49% of PSA costs that were dollar-denominated.
In addition, payments for liquefied natural gas (LNG) terminal fees of First Gas Sta. Rita and San Lorenzo plants contributed to the higher IPP charges.
Meanwhile, the Wholesale Electricity Spot Market (WESM) charges increased by P0.0150 per kWh. The average demand in the Luzon grid was higher by about 198 MW, while the average capacity for outage also increased by 179 MW.
IPPs, PSAs, and WESM accounted for 24%, 47%, and 29% of Meralco’s total energy requirement for the period.
Higher transmission and other charges
The P0.0724 per kWh increase in the transmission charge, due to higher ancillary service charges from the WESM Reserve Market, also contributed to this month’s overall growth in the electricity rate.
Taxes and other charges similarly increased by P0.0666 per kWh.
Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively. In contrast, taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) are all remitted to the government.
Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer in August 2022.
Observe safety practices ahead of the holiday season
In compliance with President Ferdinand Marcos Jr.’s and the Energy Regulatory Commission’s (ERC) recent directive, Meralco relieved customers severely affected by the onslaught of severe tropical storm Kristine.
Meralco customers in areas declared calamities with monthly consumption of less than 200 kWh are spared from disconnection until December 2024. They can also avail of installment payment arrangements for six (6) months for their electricity bills from October to December 2024.
“Meralco has always been considerate of its customers, especially during challenging times. We join the government to help those severely affected by the storm recover as soon as possible. Qualified customers who need the staggered payment arrangement can go to Meralco Business Centers. Our personnel will assist them accordingly,” Meralco vice president and head of corporate communications Joe R. Zaldarriaga said.
Meanwhile, as the holiday season approaches, Meralco reiterated its reminder to the public to remain vigilant against illegal electricity service connections, which can cause accidents and power interruptions. Under Republic Act No. 7832 or the Anti Electricity Pilferage Act, illegal service connections are punishable with possible imprisonment and fines starting from P10,000.
Meralco also reminded the public to observe the following electrical safety practices:
- Buy Christmas lights with quality control markings and use the appropriate type for indoor and outdoor use.
- If you are reusing Christmas lights, check for cracked, frayed, or damaged lights, as these are potential fire hazards.
- Inspect for loose connections and possible damages when installing decorations outdoors, especially near power lines.
- Avoid ‘octopus’ connections or overloading and avoid using all appliances at once.
- When leaving the house, unplug Christmas lights and all appliances.
- Do not use party items like poppers and balloons near power lines, which could cause power outages and accidents.
Customers can report their concerns through Meralco’s official social media accounts on Facebook (www.facebook.com/meralco) and X formerly Twitter (@meralco). They may also text their concerns.
