Consumers of electricity retailer Manila Electric Co. may have to brace for higher rates in August due to several factors exerting pressure on the generation costs.
“We’re seeing several factors putting pressure on generation costs to go up,” Meralco vice president and head of utility economics Lawrence Fernandez said.
“These are the further depreciation of the peso, an upward adjustment of the Malampaya gas price, and sustained high WESM (Wholesale Electricity Spot Market) prices, particularly during the first half of July, when the grid experienced another yellow alert,” he said.
The WESM is the trading floor of electricity where Meralco secures a portion of its monthly supply.
Meralco procured 7.8 percent of power supply from the WESM in June, which was billed to consumers in July.
Fernandez said indications pointed to higher rates for consumers in August.