After two consecutive months of reduction in power rates, the Manila Electric Co. announced a Php 0.3907 per kilowatt-hour (kWh) increase in its overall rate for September, equivalent to a Php78 increase for households consuming 200 kWh.
The increase brings MERALCO’s overall rate to Php9.9365 per kWh from last month’s Php9.5458 per kWh, mainly due to higher generation charges.
Generation charges went up to Php 6.9393 per kWh as charges from Independent Power Producers (IPPs) and power supply agreements (PSAs) amid higher fuel costs and depreciation of the Philippine peso vs. US Dollar.
The supply restriction from the Malampaya gas field also pushed MERALCO to buy more expensive alternative fuel from First Gas Sta. Rita and San Lorenzo. Furthermore, the continuous rise in international coal prices also pushed PSA charges upward.
Meanwhile, MERALCO transmission charges went down by as much as Php 0.0432 per kWh amid lower ancillary service charges.
In August, San Miguel Corporation’s energy arm SMC Global Power Holdings Corporation said that it may terminate its PSAs with MERALCO. According to SMCGP, the termination of the PSA may lead to higher electricity prices in Metro Manila.