Manila Electric Company (Meralco) to implement power rate hike
MANILA, Philippines — Meralco, the Philippines’ largest electric power distribution company, announced on Thursday that it will be implementing a power rate hike this month.
The company stated that it will be slightly increasing power rates by P0.5738 per kilowatt-hour (kWh), bringing the overall rate for a household to P11.9168 per kWh for the month. This means that customers consuming 200 kWh can expect to see a P115 increase in their total electricity bill.
Meralco attributed the increase to a higher generation charge by Power Supply Agreements (PSAs) and Independent Power Producers (IPPs), which rose to P7.1020 per kWh from P6.6468 last month. PSAs accounted for 46.8% of Meralco’s total energy requirement, while IPPs accounted for 32.8%.
According to the company, charges from IPPs spiked by P1.4764 per kW due to higher fuel costs of First Gas – Sta. Rita and San Lorenzo power plants, which are more expensive than the gas from the Malampaya plant. Additionally, Malampaya gas prices also increased by almost 12% following the signing of a new Gas Supply and Purchase Agreement between First Gas and the Malampaya consortium.
This comes after Meralco had previously increased its power rates by P0.084 per kWh last month.