Meralco rates set to increase in November

Power rates will increase this month by an average of P0.1135 per kilowatt-hour or equivalent to P23 in the monthly bill of households consuming 200 kWh, retailer Manila Electric Co. said Wednesday.

The country’s biggest power distributor said after two straight months of reduction in September and October totaling P0.25 per kWh, overall electricity rates slightly rose to P10.0901 per kWh in November from last month’s P9.9766 per kWh. 

“The slight upward adjustment of P0.1135 per kWh, mainly due to higher WESM [Wholesale Electricity Spot Market] charges following an uptick in demand and an increase in Malampaya gas prices for the period, will mean an increase of around P23 in the total bill of a typical household consuming 200kWh,” Meralco said in a statement.

WESM serves as the country’s trading floor for electricity. Meralco sourced 16.6 percent of its power requirements from WESM.

Meralco said generation charges went up to P5.2725 per kWh in November, an increase of P0.0817 per kWh from P5.1908 per kWh in October.

“The increase in the generation charge is mainly the result of a P1.3545-per-kWh increase in charges from the WESM.  WESM charges went up due to higher power demand in Luzon resulting from warmer temperature in October,” the power distributor said.

Cost of power from independent power producers and power supply agreements decreased by P0.1450 per kWh and P0.5611 per kWh, respectively. 

“A stronger peso offset an increase due to higher Malampaya natural gas prices as a result of the quarterly repricing to reflect recent movement of crude oil prices in the world market,” Meralco said.

Power plants running on Malampaya natural gas―First Gas-Sta. Rita, First Gas-San Lorenzo, First NatGas-San Gabriel, and South Premiere-Ilijan―provided 61 percent of Meralco’s supply needs.

Meralco said transmission charges on residential customers increased by P0.0021 per kWh following an adjustment in National Grid Corp. of the Philippines’ ancillary service charges. 

Taxes and other charges went up by P0.0297 per kWh this month.

Meralco said its distribution, supply, and metering charges remained unchanged for 40 months.

Topics: power rates , Manila Electric Co. , Wholesale Electricity Spot Market , Malampaya
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