The Manila Electric Co. (Meralco) has announced an overall electricity rates increase to P10.4067 per kWh this month, after a reduction in electricity bills experienced by consumers last month.
January’s electricity rates was P9.885 per kWh primarily due to the normalization of generation charge.
A typical household consuming 200 kWh will have an increase of around P114 in the total bill. The upward adjustment was P0.5682 per kWh.
From last month’s generation charge of P4.9119 per kWh, this month went up to P5.8939 per kWh, meaning an increase of P0.9820 per kWh.
The increase was mainly because of higher charges from plants under Power Supply Agreements (PSA) and Wholesale Electricity Spot Market (WESM).
The low electricity rates in January was due to the early completion of annual capacity fee payments for the previous year. Capacity fees this month returned to levels prescribed in the PSAs approved by the Energy Regulatory Commission (ERC).
The return to normal levels of capacity fees was the reason for the P1.9217 per kWh increase in PSA charges this month.
Aside from that, the Wholesale Electricity Spot Market (WESM) rates increased by P1.4141 per kWh due to tighter supply conditions in Luzon. Several power plants underwent scheduled maintenance outage this month in preparation for the summer season.
A slight decrease in the cost of power from the Independent Power Producers (IPPs) was at P0.0042 per kWh due to strengthening of the Peso against the US dollar.
In addition, transmission charge of residential customers, taxes, and other charges decreased by P0.4138 per kWh this month.