Meralco rates up in May

Customers of the Manila Electric Company (Meralco) will have to pay more for electricity this month, following the higher generation charges due to the tightening supply amid the elevated heat conditions.

In an advisory, Meralco said it will increase rates by 46.21 centavos to P11.4139 per kilowatt-hour (kWh) from P10.9518 per kWh in March. This translates to an increase of P92 for residential customers consuming 200 kWh.

Meralco said the higher rates were due to the increase in generation charges which climbed by 44.55 centavos per kWh, on the back of higher costs from the Wholesale Electricity Spot Market (WESM) and Power Supply Agreements (PSAs).

Charges from WESM rose by P1.7913 per kWh, amid the tight supply conditions in the Luzon Grid in April after demand soared by 2,401 megawatts, prompting the National Grid Corporation of the Philippines (NGCP) to declare red and yellow alerts.

Charges from PSAs also increased by 28.71 centavos per kWh due to lower excess energy deliveries of some PSAs which were priced at a discount. Prices were also swayed by the depreciation of the Philippine peso which hit 14% of dollar-denominated PSA costs.

Transmission charges, taxes, and other charges also posted a net increase of 1.66 centavos per kWh, while Meralco said its distribution charge was unchanged at 3.60 per kWh, which has been in place since August 2022.

In the same advisory, Meralco appealed to the public to steer clear of power lines, as there were 40 kite-flying incidents that triggered power interruptions in the first quarter of the year versus the 26 in the same period in 2023.

“We are appealing to our customers to refrain from flying kites and picking fruits near power lines since these can cause power interruptions and accidents,” Meralco vice president and head of Corporate Communications Joe Zaldarriaga said.

Meralco is targeting to reach a core net income of at least P40 billion this year, after it reported an 11% increase in its first-quarter earnings to P10.083 billion. It has allocated P40 billion for its capital expenditures this year, including P24 billion for distribution utilities and P4 billion for power generation.

Meralco constructs, operates, and maintains electric distribution systems in the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal, as well as certain areas in the provinces of Batangas, Laguna, Pampanga, and Quezon.

The firm counts as subsidiaries and associates Vantage Energy Solutions and Management Inc. and MeridianX Inc., acting as retail electricity suppliers in Luzon and the Visayas.—AOL, GMA Integrated News