The Manila Electric Co. (MERALCO) has announced a Php0.6232 per kilowatt-hour (kwh) increase in electricity rates for the month of January.
This is equivalent to a Php 125 increase in a residential household consuming 200 kwh.
The increase was due to higher generation costs which increased by Php 0.3316 per kwh. The jump was brought about by the increase in independent power producer (IPP) charges as the First Gas Sta. Rita and San Lorenzo power plants used more expensive alternative fuels due to the insufficient supply of the Malampaya.
Charges from the Wholesale Electricity Spot Market (WESM) also increased by Php0.6808 per kwh. The share of WESM in generation also jumped to nine percent from seven percent in December following the suspension MERALCO’s 670-megawatt (MW) power supply agreement with South Premiere Power Corp.
While MERALCO entered into an emergency PSA with GNPower Dinginin Ltd. for 300 MW, it had to source the remaining requirement from WESM.
Meanwhile, MERALCO is still implementing two refunds totaling Php1.0579 per kwh. The said refunds will be completed this month and in May 2023.