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Meralco hikes power rates in September, but freezes disconnections

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By THEPHILBIZNEWS STAFF

The Manila Electric Co. or Meralco announced recently higher electricity rates for the month as well as a freeze on power disconnections until September 30.

The September rate hike is Meralco’s sixth straight month of a power rate increase which it attributed to a higher generation charge.

On Friday, Meralco Vice President for Corporate Communications Joe Zaldarriaga the generation charge rose due to an increase in power supply agreements (PSA) and independent power producers (IPP) charges.

Zaldarriaga also noted a correction on the Net Settlement Surplus component in the July 2021 Wholesale Electricity Spot Market (WESM) bill. This lessened the decline in WESM charges.

He explained that the generation charge, which accounts for about 55 percent of the electricity bill, increased by P0.1117 per kilowatt-hour (kWh) to an actual charge of P5.0439 per kWh.

On the other hand, the charge from the PSA accounts for an increase of P0.2494 per kWh. 

As such, Meralco said there would be a “slight increase” of ₱0.1055 per kWh in electricity rates, bringing its overall rate to ₱9.1091 per kWh

This rate adjustment means a typical household consuming 200 kWh a month will be charged around ₱21 more in its electric bill for September or an additional P48 for those consuming 500 kWh.

“The reduction in demand brought about by the re-imposition of enhanced community quarantine in Metro Manila and neighboring regions led to lower excess energy deliveries, which are priced at a discount, from South Premiere Power, San Miguel Energy, and AC Energy. Despite the increase, PSAs remained Meralco’s lowest cost source of supply,” Zaldarriaga said.

Meanwhile, Meralco said disconnection activities would remain suspended in the National Capital Region (NCR) until September 15.

As for areas in the NCR or Metro Manila that will be placed under granular lockdown, the disconnection freeze will be until the end of the month. The same leniency is extended to other areas placed under strict quarantine.

“With the government’s announcement placing the provinces of Bulacan, Cavite, Laguna, Rizal and Lucena City in Quezon under modified enhanced community quarantine [MECQ] from September 8 to 30, 2021, disconnection activities will remain suspended in these areas until the end of September 2021,” Meralco said.

For areas under GCQ, Meralco 1st Vice President and Chief Commercial Officer Ferdinand O. Geluz said that customers can be assured that they Meralco will be very considerate and compassionate.

“Given the heightened restrictions still being implemented during the month of September, we continue to take into consideration the challenges our customers are facing amid these difficult times,” Geluz said.

Still, the Energy Regulatory Commission (ERC) called on consumers with the capacity to pay their bills to promptly do so to help manage the cash flow in the energy supply chain and ensure the steady supply of electricity for all.

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