Meralco rate climbs back to 2nd highest in Asia

As an Australia-based consulting firm has reported Manila Electric Company’s (Meralco) overall tariff climbing back to be the second highest in Asia, the utility firm has also reported slight increase of 10.0265 per kilowatt hour (kWh) in its August billing cycle.

“For a typical household consuming 200 kWh, this will mean an adjustment of around 15 in their total bill,” Meralco said. Higher charges, according to the utility firm, had been due to increase in the generation charge to 15.3491 per kWh from the previous month’s 15.2651 per kWh.

Meanwhile, in the ranking of various electricity markets by Australian firm International Energy Consultants (IEC), the overall power rate charged by Meralco returned to the second spot among the highest in Asia, next to Japan; while Singapore is in the third spot.

The Asian markets with subsidized power sector have relatively cheaper rates – the likes of South Korea, Thailand, Malaysia, Taiwan, Vietnam, Indonesia and South Korea. Comparing residential rates alone, Meralco is also second highest in the region. Taking reference on January 2018 rates, the equivalent average tariff of Japan was at 112.31 per kWh; Meralco at 18.96 per kWh; and Singapore at 18.83 per kWh.

Meralco’s rates had gone up again as of January 2018 after it dropped to the third spot in the last survey of the Aussie firm in 2016. In fact with Australia in the loop, Meralco was already at fourth rank two years ago.

According to the utility firm, it was partly due to higher foreign exchange rates, as the value of the Philippine peso had decelerated vis-à-vis the US dollar.

Notwithstanding the ranking, however, IEC Managing Director John Morris noted that the overall rate of Meralco had been lower by 4.0-percent this 2018 compared to the last study he had done in 2016. There’s no comparable data that he can provide for calendar year 2017.

“Meralco’s average tariff (excluding value added tax) in US cents per kWh has declined 4.0-percent since January 2016 versus an average increase of 12-percent across 46 countries,” he said.