Meralco hikes rates for November

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Manila Electric Co. (Meralco) customers may expect a higher bill this month as the company announced that it is hiking power rates this November.

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In a statement, Meralco said that electricity rates for November will go up by P1.24 per kWh for a typical household with monthly consumption of 200 kWh. The adjustment will translate to an additional P247 in the customers’ bill for the month.

Following the reduction of 49 centavos in October, Meralco noted that there will be a 98-centavo per kWh generation charge adjustment this month as several of its large power plants were on maintenance shutdown.

“Tight supply conditions due to these plant outages necessitated Meralco to source more electricity from the Wholesale Electricity Spot Market [WESM], purchases from which posted an effective increase of P8.10 per kWh,” the company stated.

Meralco said that rate from the Power Supply Agreements (PSAs) also increased by 27 centavos per kWh, adding that these were partly mitigated by a 10-centavo per kWh reduction in the average cost of the Independent Power Producers (IPPs) because of the improvement in the IPPs’ plant dispatch.

In terms of share to Meralco’s power requirements for the supply month of October, PSAs, IPPs, and WESM accounted for 46 percent, 45 percent and nine percent, respectively.

On the other hand, transmission charge also increased by 7 centavos per kWh because of the increase in the Ancillary Service Charge of the National Grid Corporation of the Philippines (NGCP).

“Following the higher generation and transmission charges, taxes, consisting of the value added tax and local franchise tax, also went up by 8 centavos per kWh. Similarly, other bill components, which include the system loss charge, went up by 11 centavos per kWh,” it stated.

Meanwhile, the country’s largest electricity distributor advised its customers to manage their electricity consumption to mitigate the impending increase.

For the holiday season, Meralco said the use of LED Christmas lights consumes less electricity compared to ordinary Christmas lights, while appliances should be in tip-top condition so as to maximize their reliability and efficiency.

Mayvelin U. Caraballo

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