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Tuesday, February 27, 2024

Meralco rates up 50 cents in Sept. on supply costs

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Power distributor Meralco said it will increase electricity rate by P0.5006 per kilowatt-hour this month due to higher costs from its suppliers.

Residential customers consuming an average of 200 kWh will see an increase of around P100 in their total electricity bill.

The rate hike followed two consecutive months of price reductions totaling P1.0121 per kWh.

Meralco’s overall rate for a typical household is P11.3997 per kWh this month from P10.8991 per kWh in August.

Meralco said its generation charge for September went up by P0.4323 to P6.8252 per kWh from P6.3929 per kWh last month due to higher costs from power supply agreements (PSA) and independent power producers (IPP).

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PSA charges increased by P1.0362  per kWh due to higher fuel prices and the peso’s depreciation against the US dollar, which affected around 30 percent of PSA charges that are dollar denominated.

IPP charges likewise went up by P0.4776 per kWh due to the same factors.

PSAs and IPPs accounted for 39 percent and 36 percent of Meralco’s total energy requirement for this period, respectively.

Charges at the Wholesale Electricity Spot Market (WESM) decreased by P0.5034 per kWh, mainly due to reductions in adjustments and other charges.

WESM’s share to Meralco’s requirement was 23 percent this month from 17 percent in the previous month.

The transmission charge for residential customers, on the other hand, registered a slight reduction of P0.0081 per kWh, Meralco said.

The National Grid Corporation of the Philippines ceased collection of 3 percent national franchise tax as directed by the ERC starting the September billing period, but this was offset by higher ancillary service charges.

Universal charges also registered a reduction of P0.0239 per kWh while taxes and other charges increased by P0.1003 per kWh.

Meralco’s distribution charge, meanwhile, has not moved since the P0.0360 per kWh reduction for a typical residential customer in August 2022.

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