Higher pass-through charges trigger increase in March power rates

The Manila Electric Company (Meralco) announced today an upward adjustment of P0.6427 per kWh in electricity rates this March, bringing the overall rate for a typical household to P13.8161 per kWh this month from P13.1734 per kWh in February. For residential customers with a typical consumption of 200 kWh, this adjustment translates to an increase of around P129 in their total electricity bill.

Higher transmission, generation charges push up overall rates

Driving the overall rate increase this month was the P0.2880-per-kWh increase in transmission charge for residential customers.

The higher transmission charge was due to a 70% increase in ancillary service charges incurred by the National Grid Corporation of the Philippines (NGCP) from the Reserve Market. Costs from the Reserve Market accounted for almost half of the total transmission charge this billing month.

Meanwhile, the generation charge went up by P0.2209 per kWh to P7.8607 per kWh.

Fixed charges from the second extension of the Power Purchase Agreement (PPA) with First Gas-Sta. Rita added around P0.38 per kWh to this month’s generation charge. These offset a P1.0952 per kWh reduction in charges from Wholesale Electricity Spot Market (WESM), as supply conditions in the Luzon grid improved.

This month’s generation charge already included the P0.2817 per kWh contract price adjustment of ACEN Corporation, Panay Energy Development Corp., South Premiere Power Corp. (SPPC) and Sual Power Inc. (SPI) approved by the Energy Regulatory Commission (ERC). This is equivalent to about P789 million in generation costs for this billing month, the impact of which was more than offset by the completion of the recovery of the previous contract price adjustment of SPPC and SPI, totaling P858 million or around P0.30 per kWh.

Meanwhile, other charges that include taxes registered a net increase of P0.1338 per kWh.

This month’s rate also reflected the implementation of the new uniform national lifeline subsidy rate of P0.01 per kWh in accordance with a recent ERC directive.

Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively; while taxes, universal charges, and renewable energy subsidies 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.

Meralco backs government call for energy efficiency amid Middle East conflict and approaching dry season

Aligned with the government’s directive on energy-saving measures amid the ongoing Middle East conflict, Meralco is urging customers to continue practicing energy efficiency to better manage consumption as the country also braces for the dry season, when demand traditionally peaks.

The reminder echoes President Ferdinand R. Marcos, Jr.’s call for government offices to implement conservation measures and his appeal for the public to adopt energy-saving practices, as global fuel market volatility persists due to the geopolitical uncertainties.

The situation coincides with the approaching dry season, when electricity demand historically increases by 20% to 33% due to increased usage of cooling appliances such as air conditioners. With higher temperatures forecast to drive increased consumption, households and businesses alike are encouraged to take proactive steps in managing their energy use.

“We are entering a period when demand for electricity traditionally peaks, and external factors are adding pressure to energy costs,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said. “By embracing energy efficiency, consumers can have better control on their electricity bills and at the same time, contribute to mitigating the impact of external factors on electricity costs.”

Some energy efficiency tips that customers can observe include unplugging appliances when not in use; utilizing natural light when and where possible; and ironing large batches of clothing at one time. They are also advised to set the air conditioners to 25°C and ensure proper maintenance and refrain from overloading the refrigerator to allow for proper air circulation of the cool air inside.

Customers can report their electricity service concerns through 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 text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211.

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