Manila Electric Co. said Thursday generation charges may go up in February because of coal and gas price increases and the peso depreciation.
“There is pressure on the generation charge to go up, largely due to projected increases in the cost of Malampaya gas and of coal, aggravated by a depreciation of the peso against the US dollar,” said Meralco head of utility economics Lawrence Fernandez. Generation charges account for the bulk of the rates of Meralco.
“We are hoping that these factors can be offset by reductions in charges from other suppliers and from the WESM [Wholesale Electricity Spot Market],” Fernandez said when asked about the possible movement of February rates.
Meralco rates went down by P0.0746 per kWh in January to P9.7027 per kWh from P9.7773 per kWh in December. Generation charges in January amounted to P5.4262 per kWh. Other components of the power bill are transmission charges, distribution cost, taxes and others.
