The Manila Electric Company (Meralco) announced today an upward adjustment of ₱0.2834 per kWh in the electricity rate this February, bringing the overall rate for a typical household to ₱12.0262 from the previous month’s ₱11.7428 per kWh.
For residential customers with a consumption of 200 kWh, this translates to an increase of around ₱57 in their total electricity bill this month.
Higher generation charge drives overall rate increase
Driving the overall electricity rate increase was the generation charge which went up by ₱0.3845 per kWh due to higher costs from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs).
IPP charges went up by ₱0.8355 per kWh due to lower average plant dispatch, weaker Peso, and higher liquefied natural gas (LNG) terminal fees of First Gas Sta. Rita and San Lorenzo. Quezon Power went on scheduled maintenance outage in January in accordance with the Grid Operating and Maintenance Program approved by the Department of Energy. The Peso depreciation against the dollar affected 97% of IPP costs that were dollar denominated.
The depreciation of the Peso, which affected 61% of PSA costs, also pushed up PSA charges by P0.0837 per kWh.
Tempering these increases were lower charges from the Wholesale Electricity Spot Market (WESM) by P0.3005 per kWh. Both average and peak demand in the Luzon grid were lower by 585 MW and 803 MW, respectively, offsetting the impact of the 612 MW increase in average capacity on outage.
IPPs, PSAs, and WESM accounted for 29%, 43%, and 28% respectively of Meralco’s total energy requirement for the period.
Transmission charge and other charges
Transmission charge for residential customers slightly decreased by ₱0.0013 per kWh. Lower ancillary service charges for January supply mitigated the impact of National Grid Corporation of the Philippines’ (NGCP) first of three-monthly collection of adjustments for February and March 2024 reserve market transactions for Luzon, following an Energy Regulatory Commission (ERC) Order.
Taxes and other pass-through charges registered a net increase of ₱0.1289 per kWh, including the impact of higher ERC-approved Universal Charge-Missionary Electrification rates by ₱0.0171 per kWh.
This month’s rates also reflected a one-time downward rate adjustment of ₱0.2264 per kWh and another downward adjustment of ₱0.0023 per kWh, both related to regulatory reset fees adjustments, also ordered by the ERC.
Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) are all remitted to the government.
Meralco’s distribution charge, on the other hand, has not moved since the ₱0.0360 per kWh reduction for a typical residential customer in August 2022.
Meralco reminds public to practice energy efficiency ahead of dry season
In preparation for the upcoming summer months, when energy demand usually spikes upward, Meralco reminded its customers to continue practicing energy efficiency to better manage their electricity consumption.
“We reiterate our call to all our customers to continue practicing energy efficiency as way of life especially with the upcoming summer months,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said.
Some power saving tips customers can use 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 Appliance Calculator that provides information on the energy consumption of appliances and gadgets.
Customers can report their 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 and 8631-1111.0.
