THE Manila Electric Company (Meralco) will increase electricity rates by 42 centavos per kilowatt hour (kWh) this month because of higher generation charge.
The increase will drive power cost to P8.82 per kWh.
The price adjustment will mean an increase of P85 in the billing statement of a household consuming 200 kWh.
The distribution utility said in a statement that the rate hike is be lower than the P10.51 per kWh implemented for the same period last year.
In a statement, Meralco said the hike was due to the impact of the generation charge, which increased by 25 centavos per kWh to P4.17 per kWh from last month. It added that the generation charge was pushed by the higher costs from power supply agreements (PSAs).
Meralco said the higher charges from PSAs was due to the normalized outage allowances this month, which allowed other plants to lower their capacity as one unit of the Calaca and Masinloc power plants was on maintenance shutdown.
“Based on historical data, consumption, and consequently overall demand for power spike as temperature rises. This could be more evident, especially that the country is experiencing El Niño,” it added.