POWER rates will increase by 22 centavos per kilowatt-hour (kWh) this month with the implementation of the Feed-in Tariff Allowance (FIT-All).
The Manila Electric Company (Meralco) said on Wednesday the Energy Regulatory Commission (ERC) has approved an additional P0.08 centavos per kWh FIT-All charge starting April, when power rates shoot up because of higher demand.
The FIT-All rate will be P0.12 per kWh beginning this month. FIT-All is a component of the bill that is remitted to the National Transmission Company (TRANSCO), which in turn, is paid to the renewable energy (RE) developers.
For a typical household consuming 200 kWh, this month’s adjustment translates to an increase of about P44 in the monthly electricity bill.
Meralco spokesman Joe Zaldarriaga said the agency is a mere collector of the approved FIT charge.
“What is certain, however, is that FIT rates will have an increase of 8 centavos per kWh, bringing the total to 12.4 centavos. And this will be reflected as a separate line item in the bills of our customers,” Zaldarriaga said.
“Having said that, as far as the overall rates are concerned, that will definitely have an impact,” he said.
“But then for the distribution charge portion, that’s the cost that goes to Meralco, it hasn’t changed since last year. The main drivers of cost is generation, in this case FIT, will be reflected as an additional cost for consumers,” he added
The generation charge rose by 10 centavos per kWh.
The increase was triggered by higher charges from the Wholesale Electricity Spot Market (WESM), which rose by P2.23 per kWh. Peak demand on the Luzon Grid grew by more than 500 MW from the February to March supply months in the runup to summer.
Meanwhile, costs of energy sourced from the Power Supply Agreements (PSAs) and Independent Power Producers (IPPs) registered slight reductions of P0.02 and P0.01 per kWh, respectively.