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Electricity rates to go up this March


Electricity rates are going up this March, which the Manila Electric Co. (Meralco) will implement partially until April.

“While electricity rates this March 2018 increased by P0.97 per kWh, only an P0.85 per kWh increase will be implemented this month in order to cushion the impact of the higher electricity rates on consumers,” the power distributor said in an emailed statement Friday.

The remaining P0.12 per kWh will reflect in the consumers’ April bill, according to Meralco.

“The adjustment brings the overall rate to P10.32 per kWh from February’s P9.47 per kWh, equivalent to an increase of P170 in the bill of a residential customer consuming 200 kWh,” the company said.

Higher charges

From the P0.7424 per kWh increase in the generation charge, Meralco will reflect an increase of P0.6414 per kWh this March.

“The difference shall be implemented in the April billing. From P4.6548 per kWh in February, the generation charge for this month will be P5.2962 per kWh,” it said.

Contributing to the generation charge increase were higher charges from the Wholesale Electricity Spot Market (WESM), which increased by P1.4441 per kWh, because of tighter supply conditions in Luzon.

“The demand for power in the grid grew by around 366 MW in February due to warmer temperatures, while around 1,000 MW of generating capacity went on scheduled maintenance outage,” Meralco noted.

The share of WESM purchases to Meralco’s total requirement this month was 19 percent.

Cost of power

Cost of power from Independent Power Producers (IPP) also increased by P0.2814 per kWh due to the annual scheduled maintenance outage of Quezon Power for the whole February supply month and continued depreciation of the peso, Meralco noted.

“The share of IPP purchases to Meralco’s total requirement this month was 35 percent,” it said.

Charges from plants under Power Supply Agreements (PSA) decreased by P0.3634 per kWh due to improved average plant dispatch. PSAs provided 46 percent of Meralco’s total energy requirement.

The transmission charge to residential customers increased by P0.0503 per kWh on higher ancillary service charges billed by the National Grid Corporation of the Philippines (NGCP). 

“Correspondingly, taxes and other charges went up by P0.1583 per kWh this month,” Meralco noted.

The company’s distribution, supply, and metering charges have remained unchanged for 32 months, after these registered reductions in July 2015, it said.

Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges.

“Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the FIT-All are remitted to the government,” it said.  

Power-saving tips

With summer just around the corner, the power distributor is encouraging its customers to continue practicing energy efficiency initiatives to help manage electricity consumption.

These include everyday household tips that may help save energy such as:

  • unplug appliances when not in use to avoid “phantom load”
  • use the aircon at mid-setting or 25 degrees Celsius for maximum efficiency
  • use a power board or strip which can supply power to several appliances at once and allows a user to turn them off simultaneously with just one switch
  • maximize natural light during daytime and keep appliances well maintained to ensure optimal performance

Meralco said customers may visit its website at www.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco for more power-saving tips. —VDS, GMA News