Meralco has announced an increase of Php0.2639 per kilowatt-hour in electricity rates for March, raising the overall rate for a typical household to Php12.2901 per kilowatt-hour from Php12.0262 in February. The adjustment translates to an additional Php53 in the total bill for residential customers consuming 200 kilowatt-hours.
The increase was mainly due to the conclusion of the one-time downward reset fee adjustment that was applied in February, higher transmission charges, and the implementation of a higher Feed-in Tariff Allowance (FIT-All). The reset fee adjustment accounted for a Php0.2264 per kilowatt-hour reduction in February, which was no longer applied this month.
Transmission costs also went up by Php0.1294 per kilowatt-hour due to higher ancillary service charges incurred by the National Grid Corporation of the Philippines. The rate also includes the second installment of reserve market transactions from February and March 2024, which the Energy Regulatory Commission (ERC) directed NGCP to collect.
FIT-All charges increased by Php0.0351 per kilowatt-hour after the ERC raised the rate to Php0.1189 per kilowatt-hour this March from the previous Php0.0838 per kilowatt-hour. FIT-All is a government-mandated charge that helps fund renewable energy producers. Taxes and other charges also registered a net increase of Php0.0416 per kilowatt-hour.
The rate increase was partially offset by a lower generation charge, which decreased by Php0.1686 per kilowatt-hour to Php7.0517 per kilowatt-hour. This was due to lower costs from Meralco’s power supply sources, including Independent Power Producers and Power Supply Agreements, which benefited from the appreciation of the peso. Around 98% of Independent Power Producer costs and 61% of Power Supply Agreement costs are dollar-denominated. Wholesale Electricity Spot Market charges also decreased by Php0.2247 per kilowatt-hour due to improved supply conditions in Luzon, even as average demand increased by 329 megawatts.
Meralco reminded customers to practice energy efficiency, as electricity demand typically rises by 20 to 33% during the dry season due to the increased use of cooling appliances. Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said that consumers should manage their power consumption, especially as the dry season approaches.
“We reiterate our call to the public to do their part in power demand management by practicing energy efficiency as a way of life. Based on latest data, electricity demand increases by 20% to 33% during the dry season due to increased usage of cooling appliances such as air conditioners,” Zaldarriaga said.
Meralco is also working with the Bureau of Fire Protection during Fire Prevention Month to raise awareness of electrical safety. Customers are advised to avoid overloading outlets, regularly check and replace damaged wires or cords, unplug appliances when not in use, and store flammable materials away from heat sources.
“We remind our customers to observe electrical safety especially with the dry season fast approaching since many household fires usually start from faulty wiring, overloaded outlets, or improper use of appliances,” Zaldarriaga added.
Meralco customers can monitor their electricity usage using the Meralco Appliance Calculator, which provides estimates of appliance energy consumption and potential savings.
How will the March power rate adjustment impact your household or business? Share your thoughts in the comments and follow Power Philippines for the latest energy updates and tips on managing your electricity consumption.
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