The Manila Electric Company (MERALCO) has announced a slight increase of Php 0.0846 per kilowatt-hour (kWh) in the January electricity rate, after a notable reduction in the previous month.
For a typical household, the overall rate for this month stands at Php 11.3430 per kWh, up from Php 11.2584 per kWh in December. For residential consumers using 200 kWh, this adjustment translates to a minimal increase of approximately Php 17 in their total electricity bill.
The overall rate adjustment is attributed primarily to the rise in the generation charge, climbing by Php 0.1136 to Php 6.6468 per kWh from Php 6.5332 per kWh in the prior month. This increase is linked to higher power costs from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs).
WESM charges increased by Php 0.5611 per kWh due to increased average capacity on outage in the Luzon grid, rising by around 418 MW. Additionally, IPP charges rose by Php 0.1384 per kWh, driven by higher fuel costs of First Gas – Sta. Rita and San Lorenzo, resulting from using imported liquefied natural gas (LNG) during testing and commissioning of its LNG terminal.
WESM and IPPs accounted for 20.5% and 36.5% of Meralco’s total energy requirement during this period.
A Php 0.1522 per kWh reduction in charges from Power Supply Agreements (PSAs) was recorded, with lower charges from Emergency PSAs (Therma Luzon Inc. and South Premiere Power Corp.) and higher excess energy deliveries from some PSAs, which were priced at a discount. PSAs contributed 43% to the December supply month.
Transmission and other charges recorded a net reduction of Php 0.0290 per kWh. The Feed-In Tariff Allowance (FIT-All) collection, at Php 0.0364 per kWh, remains suspended as directed by the Energy Regulatory Commission (ERC).