The Energy Regulatory Commission (ERC) has given the green light for Manila Electric Company (MERALCO) to implement pass-through charges from its natural gas suppliers beginning in October.

Business World reported that these additional charges will be reflected in electricity bills from October onwards.

The ERC has authorized First Gas Power Corporation (FGPC) and FGP Corporation (FGP) to recover the disparity between previously approved pass-through costs and the current landed cost of liquefied natural gas (LNG) as well as the new gas sale purchase agreements (GSPA), as stated in its resolution dated August 13.

ERC Chairperson Monalisa C. Dimalanta projected an increase of up to 33 centavos per kilowatt-hour (kWh), potentially increasing the monthly electricity bill of a household consuming 200 kWh by around Php 66.

But the actual impact will vary based on the mix of LNG and Malampaya gas used during MERALCO’s power purchase agreement (PPA) with First Gen’s subsidiaries.

MERALCO had earlier anticipated a potential rise in generation costs from First Gas – Sta. Rita and San Lorenzo due to the new GSPA pricing formula for these plants.

Preliminary calculations suggest an increase of about Php 0.12 per kWh each month, in addition to higher costs from Malampaya gas and imported LNG from Sta. Rita and San Lorenzo, following the ERC’s approval of the new GSPAs between the Malampaya consortium and First Gas.

Although computations are still being finalized, MERALCO guarantees that the public and the ERC are aware of the true impact of this ruling on power rates.