MERALCO bills may rise amid Malampaya shutdown

meralco malampaya

Customers within the Manila Electric Co. (MERALCO) franchise area may face a Php0.7897 per kilowatt-hour (kWh) increase in electricity rates with the scheduled two-week shutdown of the Malampaya gas field in February. 

In a report by the Manila Bulletin, MERALCO said that the increase is based on the “cost impact” the company submitted to the Senate and presented to the Department of Energy (DOE) during the inter-agency preparatory meeting for the maintenance shutdown of Malampaya on February 4 to 18. 

The distribution company said that the rate increase will be due to the gas plant’s shift to imported liquid fuels that are more expensive. 

Based on MERALCO’s estimates, the fuel shift from the contracted Sta. Rita gas plant will increase its charges to Php 9.4314/kWh as compared to the Php 4.3005/kWh when as is sourced from Malampaya. 

Furthermore, charges from the San Lorenzo will jump to Php 9.3971/kWh from the Php 4.2575/kWh from the Malampaya. 

The price increase in electricity prices due to the Malampaya shutdown will be reflected in MERALCO’s March billing cycle. 

MERALCO is also currently working on the possible extension of its emergency power supply agreement with Aboitiz Power Corporation, which expires today, January 25. 

In December, Aboitiz Power, through GNPower Dinginin Ltd., and MERALCO signed a 300 MW baseload emergency supply deal that partially replaced the 670 MW capacity under the latter’s PSA with South Premiere Power Corporation (SPPC), which was subject to a temporary restraining order (TRO) issued by the Court of Appeals. 

The DOE had earlier disclosed the contingency measures for securing power supply amid the Malampaya shutdown.