Meralco rates up in July

Households serviced by the Manila Electric Company (Meralco) will have to pay more for electricity this month, as the power distributor on Monday announced a hefty upward adjustment due to higher generation charges.

In an advisory, Meralco said it will hike its rates by P2.1496 per kilowatt-hour (kWh) this month, bringing the overall rate for a typical household to P11.6012 per kWh from P9.4516 per kWh in June. This translates to an increase of around P430 for residential customers consuming 200 kWh.

Meralco attributed the adjustment to the generation charge which increased by P2.0021 per kWh, as prices in the Wholesale Electricity Spot Market (WESM) charges normalized after the Energy Regulatory Commission (ERC) ordered a staggered collection of earlier charges.

To recall, the ERC directed a staggered collection of around P500 million in May generation costs in four equal monthly installments until September 2024, as requested by Meralco and other firms.

WESM charges in July increased by P6.6370 per kWh, reflecting the recovering of a portion of deferred WESM costs from the May supply month. This was partly offset by a drop in the average demand in the Luzon grid.

Charges from independent power producers (IPPS) likewise climbed by P0.4392 per kWh due to higher fuel cost, while those from power supply agreements (PSAs) increased by P0.353 per kWh.

Transmission charges, meanwhile, declined by P0.155 per kWh as there were no reserve market settlement charges which impacted the ancillary service charges in June. Taxes and other charges posted a net increase of P0.3025 per kWh.

“We again appeal for the understanding of our customers over the delayed bills as we sought guidance from the ERC on the implementation of this month’s rate adjustment.,” Meralco vice president and head of corporate communications Joe Zaldarriaga said.

“Rest assured that Meralco will adjust the due dates to give our customers enough time to settle their bills,” he added.

The company is optimistic to hit a core net income of at least P40 billion in 2024, as it believes it can sustain the growth it recorded in the first quarter of the year.

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. —KG, GMA Integrated News