Joe Zaldarriaga
The Manila Electric Company (Meralco) announced a slight increase of ₱0.1048 per kWh in electricity rates for December 2024, raising the overall rate for typical households to ₱11.9617 per kWh from last month’s ₱11.8569 per kWh.
“For residential customers consuming 200 kWh, this adjustment means an additional ₱21 in their total electricity bill,” said Joe R. Zaldarriaga, Meralco vice president and head of corporate communications.
Higher generation charges drive increase
The rate hike was primarily driven by a ₱0.1839 per kWh increase in the generation charge, reflecting higher costs from the Wholesale Electricity Spot Market (WESM) and Power Supply Agreements (PSAs).
- WESM Charges: Increased by ₱0.2531 per kWh due to tighter supply conditions in the Luzon grid, as average outages reduced capacity by around 396 MW.
- PSA Charges: Rose by ₱0.1050 per kWh, influenced by the depreciation of the Philippine peso and reduced PSA dispatch.
Mitigating these increases was a ₱0.0410 per kWh decrease in costs from Independent Power Producers (IPPs), as higher dispatch levels from the restored First Gas Sta. Rita Modules offset the peso’s impact on IPP costs.
For the period, energy sources were distributed as follows: PSAs, 40.2%; WESM, 31.4%; and IPPs, 28.3%
Other charges adjustments
- Transmission Charge: Decreased by ₱0.0940 per kWh due to lower ancillary service charges.
- Taxes and Other Charges: Increased slightly by ₱0.0149 per kWh.
Meralco emphasized that power suppliers and grid operators pay pass-through charges for generation and transmission. In contrast, taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) are remitted to the government.
The distribution charge remains unaffected unchanged since its ₱0.0360 per kWh reduction in August 2022.
Holiday electrical safety reminder
Meralco urged the public to prioritize electrical safety during the holiday season to ensure accident-free celebrations.
“With the holidays fast approaching, we encourage customers to practice electrical safety to avoid untoward incidents. Rest assured, our crews are available 24/7 for any electricity service concerns,” said Zaldarriaga.
Safety Tips for the Holidays:
- Unplug Appliances: Always unplug Christmas lights and appliances when not in use or before leaving home.
- Inspect Decorations: Check Christmas lights for frayed wires or damages before reuse, as these can pose fire hazards.
- Avoid Nails or Thumbtacks: Use light hangers instead of nails or staples to prevent damaging cables.
- Prevent Overloading: Avoid octopus connections or plugging multiple extension cords together, a common cause of fires.
- Keep a Fire Extinguisher Handy: Ensure you have a working fire extinguisher at home for emergencies.