MERALCO rates up Php 0.1761/kWh this May

The Manila Electric Company (MERALCO) recently announced  Php 0.1761 per kilowatt-hour increase in electricity rates for the month of May to Php 11.4929 per kWh. 

Households that consume 200 kWh should expect an increase in their electricity bill of around Php 35.

The increase in Wholesale Electricity Spot Market (WESM) and Power Supply Agreement (PSA) costs led to a rise in the generation charge from Php 7.3295 per kWh to Php 7.6697 per kWh. This also covers the final installment of deferred charges of about Php 0.20 per kWh.

MERALCO worked with its suppliers and the Energy Regulatory Commission (ERC) to stagger the collection of almost P1.1 billion in generation expenses in the March billing to lessen the impact of the rate hike on its customers.

The increase of P0.9086 per kWh in PSA fees was due to the depreciation of the Peso, affecting over 26% of dollar-denominated PSA costs. Meanwhile, the Independent Power Producers’ (IPP) fee reduction of P1.4014 per kWh helped limit the increase in the generation charge. This was mainly due to higher average plant dispatch from First Gas-Sta. Rita and San Lorenzo plants – which resumed normal operations after scheduled maintenance outages last March.

MERALCO is slated to finalize the distribution-related refund this month, equivalent to around Php 0.8656 per kWh for its private customers. This will be evident until the billing cycle for June.