Manila Electric Company (Meralco) to Implement Power Rate Hike
The Manila Electric Company (Meralco) announced on Friday that it will be implementing another power rate increase this month, marking the third consecutive uptick in power rates for the country’s largest electric power distribution company.
According to Meralco, the power rates will be slightly raised by P0.0229 per kilowatt-hour (kWh), bringing the overall rate for households to P11.9397 per kWh for the month. This is up from P11.9168 in February.
The increase in power rates is attributed to a P0.3976 per kWh rise in the transmission charge for residential customers, caused by higher ancillary service charges. However, this was partially offset by a decrease in the generation charge by P0.3518 per kWh.
The decrease in charges from Power Supply Agreements (PSAs) and Independent Power Producers (IPPs) helped mitigate the overall increase. Charges from the Wholesale Electricity Spot Market (WESM) also saw a decline, contributing to the overall adjustment in power rates.
For this period, PSAs accounted for 51% of Meralco’s total energy requirement, while IPPs and WESM accounted for 27% and 22%, respectively. The company assured customers that the impact of the rate hike would result in an increase of less than P5 for a customer consuming 200 kWh.
The adjustment in power rates comes as Meralco continues to navigate the fluctuations in the energy market and ensure a stable power supply for its customers.
