Power rates in Metro Manila will go up this September after two consecutive months of decline as higher fuel costs and weaker peso pushed generation charge upward, according to the Manila Electric Co. (Meralco).
The P0.3907 per kilowatt hour (kWh) upward rate adjustment brings overall power rates of Meralco to P9.9365 from last month’s P9.5458 per kWh. It is equivalent to an increase of around P78 in the total bill of residential customers consuming 200 kWh monthly.
Meralco said generation charge for September went up P0.3581 to P6.9393 per kWh from P6.5812 per kWh as charges from independent power producers (IPPs) and power supply agreements (PSAs) increased by P0.8026 and P0.3316 per kWh, respectively.
The power distribution firm said the ongoing Malampaya gas supply restriction forced natural gas-fired power plants to use a more expensive alternative fuel. The peso depreciation also increased the charges from the IPPs and PSAs since 98 percent of total IPP costs and 36 percent of PSA costs are dollar-denominated.
The continued rise in international coal prices also contributed to the PSA rate increase.
Charges from the Wholesale Electricity Spot Market (WESM) were reduced as the supply situation in the Luzon grid improved.
Transmission charge for residential customers decreased by P0.0432 per kWh due to lower ancillary service charges but taxes and other charges registered a net increase of P0.0758 per kWh, including the additional P0.0239 per kWh to the universal charge for missionary electrification (UCME) as recently ordered by the Energy Regulatory Commission.
With the adjustment, universal charges now total P0.2228 per kWh from P0.1989 per kWh previously.
Meralco added that the ongoing distribution-related refunds equivalent to P1.8009 per kWh for residential customers continue to temper monthly bills.
The company earns from distribution, supply and metering charges, which went down by P0.0360 per kWh in August for a typical residential customer, after being unchanged since July 2015.
The company said of its total power requirements for the month, 10 percent was from WESM, 42 percent from IPPs and 48 percent from PSAs.
