The Manila Electric Company (Meralco) announced an increase in electricity for October due to rising generation costs from the power suppliers.
In an advisory released by Meralco, rates will increase by ₱0.2331 per kilowatt-hour (kWh) to ₱13.3182 per kWh from ₱13.0851 per kWh for September. This means that the total bill of the average household consuming 200 kWh per month will increase by ₱47.
Meralco stated that a rise in generation charges of ₱0.1903 per kWh has contributed to the increase. The cost of power supply agreements (PSA) and independent power producers (IPPs) has increased. The weakening of the peso against the US dollar and rising fuel prices caused PSA expenses to rise by ₱0.3567/kWh and IPP rates by ₱0.3622/kWh. after the weakening of the peso in relation to the US currency and the rise in fuel prices.
The Energy Regulatory Commission (ERC)-approved temporary extension of Meralco’s power purchase agreement also contributed to the increase, which was somewhat countered by a P2.0688 drop in Wholesale Electricity Spot Market (WESM) fees per kWh.
While costs are increasing, the assurance from the company is that most of its supply is still procured through long-term contracts, thus insulating consumers from very strong fluctuations in spot market prices. Meralco will also remind customers of payment schemes and energy efficiency programs that can help in managing costs in times of increasing prices. Aileen Lor
