Manila Electric Company (Meralco) has assured the public that electricity supply will remain adequate as the country begins to go through peak summer months. However, the distribution utility warned that rising global fuel prices due to the tensions in the Middle East can drive electricity bills higher, with the effect most likely seen in the April billing period. 

Speaking during a media roundtable, on Wednesday (March 4), Utility Economics Analyst Lawrence S. Fernandez said that the cost for March electricity bills are based on earlier fuel prices and will not reflect the effects of the recent geopolitical volatility.

“The earliest we may see an effect is for April,” Fernandez said, noting that the extent of any increase will depend on how long the conflict persists.

This comes at a time where electricity demand is expected to peak as the country enters its hotter season. Fernandez said power consumption typically peaks around May and June, while household usage levels begin to rise starting March and April.

Electricity consumption usually rises around 20% to 33% in the summer due to the increased usage of air conditioners and other cooling appliances.

While oil is not critical for electricity generation in Luzon, Meralco still confirmed that electricity costs are still affected by international energy markets as they are linked to the price of natural gas and coal. The price of Malampaya gas, for example, is linked to global oil benchmarks such as Dubai crude.

Meralco reassured that fuel supply for power generation remains secure, despite these risk factors. For instance, liquefied natural gas (LNG) shipments are already arriving in Batangas and additional supply is being sourced from other countries such as Malaysia and Australia.

The company is also seeking regulatory approval for additional power supply contracts to reduce reliance on the Wholesale Electricity Spot Market (WESM), the platform where power prices fluctuate based on supply and demand.

Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said the utility is completely on board for the government’s push for stronger energy efficiency practices.

“We fully support the government’s call for energy efficiency,” Zaldarriaga said.

Later in the briefing, Meralco also demonstrated energy-saving practices at its Power Lab facility. It showcased how proper air-conditioning settings and regular maintenance can help reduce electricity consumption during the summer months to save on bills.

As summer approaches, the question now is whether households can manage rising electricity consumption amidst continued volatility in global energy markets?

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