Meralco raises power rates in March

Customers of Manila Electric Co. (Meralco) should brace for higher electricity bill this month as the power distributor raised electricity rates by P0.0894 per kilowatt hour (kWh).

The upward adjustment translates to an overall electricity rate of P10.4961 per kWh in March from February’s P10.4067 per kWh.

The rate hike also means an increase of P18 in the total bill of a typical household consuming 200kWh in a month.

In a press conference in Pasig City on Thursday, Meralco spokesperson Joe Zaldarriaga explained that the rate hike was due to the increment in Wholesale Electricity Spot Market (WESM) charges by P0.5178 per kWh caused by tighter supply conditions in Luzon with higher demand for power and more frequent plant outages.

WESM provides 40 percent of Meralco’s supply needs.

This offset the decline in generation charge of P5.5973 per kWh from P5.8939 per kWh on the back of lower charges from plants under power supply agreeements (PSA).

PSA charges went down by P1.0768 per kWh due to strengthening of the peso against the US dollar, lower fuel prices, and higher average plant dispatch. The share of PSA’s to Meralco’s total requirement this month is at 48 percent.

Nevertheless, cost of power from independent power producers increased slightly by P0.0549 per kWh due to lower average plant dispatch. Independent power producers provided 12 percent of Meralco’s supply needs.

Transmission charge of residential customers also went up by P0.0288 per kWh due to higher National Grid Corp. of the Philippines ancillary service charges.

Taxes and other charges, likewise, increased by P0.3572 on the back of the completion of the Universal Charge-Stranded Contract Costs refund last month.

Distribution, supply, and metering charges remained unchanged for 44 months since it registered reductions in July 2015.

Zaldarriaga also said that customers can expect continued rate increases in the coming months as demand usually peaks during the summer season.

He also ensured that power supply is enough during the dry season and that Meralco is prepared in case there will be power plant outages. —KBK, GMA News