MERALCO: Higher transmission charge pushed September bill upward

Manila Electric Company (MERALCO) says that higher transmission charges contributed to an increase in the electricity bill this September. 

“So ang pagtaas ng transmission charge ay naging dahilan kung bakit [ang] pagbawas sa generation charge, na wipe out nung pagtaas ng transmission charge,” said MERALCO spokesperson Joe Zaldarriaga.

MERALCO announced an upward adjustment of around P0.1543 per kilowatt hour (kWh) in this month’s electricity rate, which brought the overall rate to Php 11.7882 per kWh compared to last month’s Php 11.6339 per kWh.

This signified an equivalent increase of around Php 31 for residential customers consuming 200 per kWh.

The transmission charge increased to Php 0.2913 per kWh due to higher ancillary services brought about by the resumption of commercial operations in the Reserve Market last month.

Charges for ancillary services sourced from the Reserve Market had surpassed those under NGCP’s Ancillary Services Procurement Agreements (ASPAs), which doubled the costs. This sharp increase has driven ancillary service charges to more than half of NGCP’s transmission rate.

This increase countered the decrease in the generation charge, which fell by P0.1547 per kWh. 

The appreciation of the Philippine Peso, reaching its highest value since December 2023, significantly lowered costs associated with dollar-denominated power supply agreements (PSAs) and independent power producers (IPPs), reducing charges by P0.2371 per kWh and P0.0529 per kWh, respectively. 

The Distribution Utility (DU) firm previously informed its customers of an upcoming increase in generation costs from First Gas – Sta. Rita and San Lorenzo, following the Energy Regulatory Commission’s (ERC) approval of adjusted rates for these two suppliers.

Per ERC directives, the updated Malampaya pricing, as stipulated in the new Gas Sale and Purchase Agreements (GSPAs) for First Gas plants, will take effect starting September 2024 and will be visible on customer bills from October. 

Furthermore, the adjustment in costs resulting from the transition to the new GSPAs, applicable up to the August 2024 supply month, will be spread over 12 months, starting with the October 2024 billing period.