Power rates in Metro Manila will increase for the third consecutive month in September on higher transmission charges, according to the Manila Electric Co. (Meralco).
The P0.1543 per kilowatt hour (kWh) increase this month brings overall power rates of Meralco to P11.7882 from last month’s P11.6339 per kWh.
The company said in a briefing yesterday the adjustment is equivalent to an additional P31 in the total bill of residential customers consuming 200 kWh monthly.
Meralco said this month’s overall rate adjustment was pushed by the P0.2913 per kWh increase in the transmission charge for residential customers due to higher ancillary service charges following the resumption of commercial operations of the Reserve Market on August 5.
“If not for the increase in transmission charge, we would have a price reduction this month,” said Joe Zaldarriaga, Meralco vice president and head of corporate communications.
This month’s higher transmission charge more than offset the reduction in the generation charge, which went down by P0.1547 per kWh as charges from power supply agreements (PSAs), independent power producers (IPPs) and the Wholesale Electricity Spot Market (WESM) all registered reduction.
The company said the decrease in the generation charge was primarily driven by the peso’s appreciation to its strongest level since December 2023, affecting 50 percent of PSA costs and 97 percent of IPP costs that were dollar denominated.
PSA and IPP costs experienced reduction of P0.2371 per kWh and P0.0529 per kWh, respectively.
WESM charges decreased by P0.0514 per kWh and factored in the final of four installments of the deferred May 2024 WESM costs earlier ordered by the Energy Regulatory Commission.
Taxes and other charges registered a P0.0177 per kWh net increase.
Of Meralco’s total power requirements for the month, 46.2 percent were from PSAs, 27.3 percent from WESM and 26.4 percent from IPPs.
