Meralco power rates increase in March

OVER EIGHT MILLION customers served by Manila Electric Co. (Meralco) will have to tighten their belts this month as the power distributor announced a rate hike, citing higher transmission and generation charges.

- By Sheldeen Joy Talavera Reporter

However, Meralco consumers may see even higher bills in April as the widening Middle East war continues to drive up global oil prices.

In a statement on Tuesday, the company announced an increase of P0.6427 per kilowatt-hour (kWh), bringing the overall rate to P13.8161 per kWh in March from P13.1734 per kWh in February.

The upward adjustment translates to an increase of around P129 in the electricity bills of typical consumers consuming 200 kWh. Households consuming 300 kWh, 400 kWh, and 500 kWh will have to pay an additional P193, P257, and P321 in their bills.

Driving this month’s power rate hike was the P0.2880 per kWh increase in transmission charge, fueled by higher costs of ancillary service procured by the grid operator from the reserve market.

The costs from the reserve market, an avenue where generators sell backup electricity capacities, accounted for almost half of the total transmission charge for the period.

Also contributing to the upward adjustment was the generation charge which increased by P0.2209 per kWh to P7.8607 per kWh. Fixed charges from the second extension of the power purchase agreement with a gas-fired power plant in Batangas added around P0.38 per kWh to this month’s generation charge.

These offset the decline in the cost of power procured from the Wholesale Electricity Spot Market (WESM) amounting to P1.0952 per kWh, as supply conditions in the Luzon grid improved.

Meralco began collecting the P0.2817 per kWh price adjustment sought by four power generators for fuel costs recovery, as approved by the Energy Regulatory Commission (ERC).