HIGHER. Customers in Meralco franchise areas can expect higher electricity charges this month as the distribution utility says Wednesday (Oct. 11, 2023) that it will implement a rate increase for October. This is the second month that Meralco will increase power rates amounting to nearly PHP1 per kilowatt hour. (File photo)
MANILA – Electricity rates in franchise areas of Manila Electric Co. (Meralco) will be higher in October, the distribution utility (DU) announced Wednesday.
Meralco said power rates in its franchise areas will increase by PHP0.4201 per kilowatt hour (kWh) to PHP11.8198 per kWh from PHP11.3997 per kWh in September.
Since the increase in September, electricity charges by Meralco were higher by PHP0.9207 per kWh.
“For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around PHP84 in their total electricity bill,” Meralco said in a statement.
The company said this month’s higher electricity rates were due to the increase in generation charges by up to PHP0.3015 per kWh to PHP7.1267 per kWh from PHP6.8252 per kWh in August.
This was because of higher collections from independent power producers (IPPs) and power supply agreements (PSAs), which increased by PHP0.4599 per kWh and PHP0.1658 per kWh, respectively.
Meralco said the gas supply restriction from Malampaya has made the First Gas plants in Sta. Rita and San Lorenzo switch to more expensive alternative fuel, while the San Gabriel power plant went on forced shutdown from Sept. 18 to 24 due to the limited gas flow from Malampaya natural gas field.
Rates from the Wholesale Electricity Spot Market (WESM) also increased slightly by PHP0.0525 per kWh.
In September, Meralco sourced 47 percent of its power requirement from PSAs, 35 percent from IPPs and 18 percent from WESM.
Likewise, transmission and other charges of Meralco also increased due to higher ancillary service fees.
On the other hand, Meralco’s distribution charge for residential customers has not moved since August 2022. (PNA)
