Meralco rates up by P.86 per kwh this month

Power distribution giant Manila Electric Co. (Meralco) announced higher electricity tariff this month as rates normalized after the three-month refund as well as the upward impact of higher spot market prices and the peso’s depreciation against the dollar.

Consumers will see an increase of P0.8642 per kilowatt-hour in overall rates from P8.3849 per kwh to P9.2491 per kwh.

This translates to an increase of P172.84 in the bills of 200-kwh household, of P259.26 for 300 kwh, P345.68 for 400 kwh and P432.10 for 500 kwh.

Meralco said rates this month returned to prerefund levels after completion of the P6.9-billion refund of over-recovery on pass-through charges from January 2014 to December 2016, which was implemented from June to August.

For residential customers, the refund translated to a monthly reduction of around P0.88 per kwh, including taxes.

Meralco also attributed the increase to the generation charge, which increased from P3.9763 per kwh to P4.5378 per kwh.

Purchases from the Wholesale Electricity Spot Market (WESM) rose P1.7263 per kwh as prices in the spot market increased due to higher power demand in the Luzon grid.

The cost of power from power supply agreements (PSAs) also registered a slight increase of P0.0263 per kwh, mainly due to the peso depreciation and lower plant dispatch.

On the other hand, the cost of power sourced from independent power producers (IPPs) decreased by P0.1117 per kwh due to improved dispatch of First Gas’ Sta. Rita plant, after undergoing scheduled maintenance in the preceding month.

The shares of WESM and PSAs this month stood at 12 percent and 42 percent, respectively, while IPPs contribution was at 46 percent.

In terms of other charges, the transmission charge of residential customers decreased by P0.0510 per kwh but taxes and other charges have gone up by P0.3537 per kwh.