The Manila Electric Company (Meralco) has announced an increase of P0.2639 per kWh in electricity rates for March, raising the overall rate for a typical household to P12.2901 per kWh from February’s P12.0262 per kWh.
This adjustment translates to an approximate increase of P53 in the monthly bill for residential customers consuming 200 kWh.
The key driver of this month’s rate hike is the absence of February’s one-time downward adjustment of P0.2264 per kWh in the reset fee, which was implemented in compliance with an Energy Regulatory Commission (ERC) directive.
Other contributing factors include a P0.1294 per kWh rise in the transmission charge due to increased ancillary service costs incurred by the National Grid Corporation of the Philippines (NGCP). Additionally, this month’s transmission charge includes the second of three installments related to reserve market transactions for Luzon, as mandated by the ERC.
Furthermore, the Feed-in Tariff Allowance (FIT-All) increased by P0.0351 per kWh following an ERC directive to implement a new FIT-All rate of P0.1189 per kWh, up from the previous P0.0838 per kWh. Taxes and other charges also posted a net increase of P0.0416 per kWh.
Lower generation charges help offset the increase
The impact of higher charges was partially mitigated by a reduction in the generation charge, which decreased by P0.1686 per kWh, bringing it down to P7.0517 per kWh from February’s P7.2203 per kWh. This was primarily due to lower costs from Meralco’s power supply sources.
Costs from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) fell by P1.0143 and P0.2934 per kWh, respectively, largely due to the appreciation of the Philippine Peso against the US dollar. The drop affected approximately 98% of IPP costs and 61% of PSA costs, which are dollar-denominated.
Wholesale Electricity Spot Market (WESM) charges declined by P0.2247 per kWh due to an improved power supply situation in Luzon. While grid demand increased by around 329 MW, the average capacity on outage was lower by about 157 MW in the February supply month.
For the period, Meralco’s energy supply was sourced from IPPs (31%), PSAs (47%), and WESM (22%).
It is important to note that pass-through charges for generation and transmission are remitted to power suppliers and the grid operator. In contrast, taxes, universal charges, and FIT-All go to the government. Meralco’s distribution charge has remained unchanged since its P0.0360 per kWh reduction in August 2022.
Prioritize electrical safety and energy Efficiency
As part of its public service initiatives, Meralco has strengthened efforts in promoting electrical safety, especially in partnership with the Bureau of Fire Protection (BFP) during Fire Prevention Month.
“We remind our customers to observe electrical safety, particularly as the dry season approaches. Many household fires stem from faulty wiring, overloaded outlets, or improper use of appliances,” said Joe R. Zaldarriaga, Meralco Vice President and Head of Corporate Communications.
Meralco provided the following electrical safety tips:
- Avoid overloading outlets and octopus connections, which can cause fires.
- Regularly inspect cords and wires, replacing damaged ones immediately.
- Unplug appliances when not in use to prevent overheating and reduce energy consumption.
- Keep electrical devices away from water to avoid electrocution and short circuits.
- Store flammable materials away from heat sources like electrical appliances and wiring.
With rising temperatures, Meralco also advised customers to practice energy efficiency to manage their electricity consumption effectively.
“We encourage the public to integrate energy efficiency into their daily lives. Electricity demand rises by 20% to 33% during the dry season due to increased use of cooling appliances,” Zaldarriaga noted.
To conserve power, customers can:
- Regularly clean air conditioner filters for optimal efficiency.
- Avoid overloading refrigerators.
- Use LED bulbs to save on lighting costs.
To better control their electricity usage, customers can use the Meralco Appliance Calculator to estimate the energy consumption of various appliances and gadgets.
Customers can report concerns via the My Meralco app or through Meralco’s official social media accounts on Facebook (www.facebook.com/meralco) and X (formerly Twitter) (@meralco). They may also reach Meralco by text at 0920-9716211 or 0917-5516211 or call the Meralco Hotline at 16211 and 8631-1111.