Manila Electric Company (Meralco) announced an overall electricity rate increase by PhP0.3136 per kWh after two consecutive months of reduction, which would mean an increase of around P63 in the total bill of a typical household consuming 200 kWh.
The higher July rate is mainly due to the increase in generation charge which is PhP0.2823 per kWh.
The overall rate increase totals to PhP10.1925 from June’s PhP9.87789 per kWh.
The increase is the result of P0.3573 per kWh rise in the cost of power from Independent Power Producers (IPPs), as a result of continued peso depreciation and lower average plant dispatch. Approximately 96 percent of IPP charges are dollar-denominated.
The Wholesale Electricity Spot Market (WESM) charges also increased by PhP0.7039 per kWh due to higher WESM prices.
As a result of the higher generation charge, taxes and other charges went up by PhP0.0309 per kWh this month.
The weakening of peso against dollar also resulted in a P0.1513 per kWh increase in the cost of power from Power Supply Agreements (PSAs). Around 63 percent of PSA charges are dollar-denominated.
Meanwhile, the National Grid Corporation of the Philippines (NGCP) declared Yellow Alerts from May 29 to June 1 and on June 4 due to insufficient reserves.