Following last month’s significant rate reduction, the Manila Electric Company (Meralco) announced today a slight upward adjustment of P0.0846 per kWh in the January electricity rate. This brings the overall rate for a typical household to P11.3430 per kWh this month from P11.2584 per kWh in December.
For residential customers consuming 200 kWh, the adjustment is equivalent to a minimal increase of around P17 in their total electricity bill.
Higher generation charge triggers overall rate increase
The overall rate increase was primarily due to the higher generation charge, which inched up by P0.1136 to P6.6468 per kWh from P6.5332 per kWh last month, owing to higher cost of power from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs).
WESM charges went up by P0.5611 per kWh due to higher average capacity on outage in the Luzon grid, which increased by around 418 MW. Charges from IPPs also increased by P0.1384 per kWh due to higher fuel costs of First Gas – Sta. Rita and San Lorenzo resulting from the use of imported liquefied natural gas (LNG) in the testing and commissioning of its LNG terminal. WESM and IPPs accounted for 20.5% and 36.5%, respectively, of Meralco’s total energy requirement for the period.
Tempering the increase was a P0.1522 per kWh reduction in charges from Power Supply Agreements (PSAs) with the lower charges from Emergency PSAs (with Therma Luzon Inc. and South Premiere Power Corp.) and higher excess energy deliveries from some PSAs, which were priced at a discount. Share of PSAs for the December supply month was at 43%.
Transmission and other charges
Transmission and other charges registered a net reduction of P0.0290 per kWh.
The collection of the Feed-In Tariff Allowance (FIT-All), at the rate of P0.0364 per kWh, remains suspended as directed by the Energy Regulatory Commission (ERC). Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively, while taxes, universal charges, and FIT-All 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 beginning August 2022.
Meralco urges qualified customers to apply for the lifeline discount; reminds public to practice energy efficiency
With the implementation of the Lifeline Rate Program in full swing, Meralco urged its qualified customers, particularly beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) and other marginalized households with certification from their local Social Welfare and Development Office (SWDO), to apply for inclusion in the subsidy mechanism to continue getting discounts on their electricity bills. Only customers with approved applications can receive the Lifeline Rate. Qualified and interested customers can visit the nearest Meralco Business Center to apply.
Meralco also reminded the public to continue practicing energy efficiency for better management of their electricity consumption. Some power saving tips include unplugging appliances when not in use, ironing large batches of clothing at one time, refraining from overfilling refrigerators, regular cleaning of air conditioner filters, and using LED bulbs for lighting.
Meralco customers can also have better control of their monthly electricity bills with the help of the Meralco Mobile App Appliance Calculator that provides information on the energy consumption of appliances and gadgets.
For more information about the lifeline rate program and energy efficiency practices, customers can visit the Meralco website (www.meralco.com.ph). For other concerns, customers can report 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 and 8631-1111.