JUST CHECKING The Manila Electric Company conducts routine inspection of overhead electric power meters in Baseco Compound, Port Area, Manila on Tuesday (May 14, 2024). One connection was cut for suspected illegal tapping. PNA
The tight power supply in the Luzon grid during the yellow and red alerts in April has pushed electricity rates up in franchise areas of Manila Electric Company (Meralco).
Meralco announced Tuesday that power rates in May increased by P0.4621 per kilowatt hour to P11.4139 per kWh from P10.9518 per kWh in the previous month.
This means that a residential customer consuming 200 kWh a month can expect an increase of P92 in electricity bill for May.
Generation rate, transmission fee, and other charges went up this month.
In a statement, Meralco said overall generation charge rose P0.455 per kWh due to higher prices at the Wholesale Electricity Spot Market (WESM) and Power Supply Agreements (PSAs).
Electricity rate from WESM jumped P1.7913 per kWh because of the higher demand in the Luzon grid while some of the power plants went on unplanned shutdown.
“There were three days with yellow alerts and five days with yellow/red alerts from normal conditions the previous supply month. In addition, the secondary price cap was triggered 19 percent of the time in April versus only 7 percent the previous month,” Meralco said.
“Similarly, charges from PSAs increased by P0.2871 per kWh due to lower excess energy deliveries of some PSAs,” the distribution utility said.
The weaker peso against the US dollar also affected the increase in dollar-dominated PSA rate.
On the other hand, the electricity rate from Independent Power Producers (IPPs) tempered the higher WESM and PSA charges.
“WESM, PSAs, and IPPs accounted for 30 percent, 36 percent, and 34 percent respectively of Meralco’s total energy requirement for this period,” Meralco said.
Meanwhile, transmission and other charges had a net increase of P0.0166 per kWh. PNA