Meralco to increase generation charge this month


Expect your electricity bill for June to rise by 22 centavos per kilowatthour.

That’s because Manila Electric Company’s (Meralco) generation charge has gone up.

Meralco said a typical household using 200 kilowatthours will experience an increase of around P44 as the generation charge rose by 19 centavos per kWh, to P5.66 per kWh.

The power distributor also said the Luzon outage last May 8 was a factor in the increase, since it limited the output of San Miguel Energy (Sual), South Premiere Power (Ilijan), Sem-Calaca Power, and First Gas, plants that supply power to Meralco.

To make up for the shortfall, Meralco had to draw heavily from the Wholesale Electricity Spot Market (WESM).

The transmission charge likewise grew by two centavos per kWh due to higher ancillary service charges. Taxes, meanwhile, increased by 1.5 centavos per kWh.

Other bill components, which include the system loss charge, power act reduction, previous month’s adjustment on generation cost, subsidy, and universal charges, had a cumulative reduction of 0.5 centavos per kWh.

Meanwhile, Independent Power Producers (IPPs), QPPL and First Gas, had an average increase of 18 centavos per kWh because of higher fuel costs following the weakening of the peso against the dollar.

Plants selling to Meralco under the new Power Supply Agreements (PSAs) remained to offer the lowest rates, registering a 1-centavo decrease.

The PSAs and IPPs accounted for 50 percent and 38 percent, respectively, of Meralco’s total energy requirement in May. The remaining 12 percent came from the WESM, NPC, and other sources.

In the previous month, consumers enjoyed an overall 12-centavo per kWh drop in the billing month, as reduction in the transmission and other components of the electric bill offset a higher generation charge.

A typical household consuming 200 kwh had a P24 reduction in its May bill.


Please follow our commenting guidelines.

Comments are closed.