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Manila Bulletin devider Business devider Meralco power bills to climb in November

Meralco power bills to climb in November

Published Nov 12, 2024 06:28 am

Power retailer Manila Electric Company (Meralco) announced a P0.4274 per kilowatt-hour (kWh) increase in electricity rates for November, bringing the overall rate to P11.8569 per kWh from October's P11.4295 per kWh.

In a briefing, Joe Zaldarriaga, Meralco vice president and head of corporate communications, said the increase is driven by higher generation and transmission charges, coupled with the recent depreciation of the peso against the US dollar.

Zaldarriaga further explained that charges from Independent Power Producers (IPPs) rose by P0.9392 per kWh, while Power Supply Agreements (PSAs) posted a P0.4295 per kWh increase. 

The weaker peso likewise affected these costs, as 98 percent of IPP costs and 49 percent of PSA costs are dollar-denominated. 

Increased liquefied natural gas (LNG) terminal fees for the First Gas Sta. Rita and San Lorenzo plants also contributed to the higher generation charges.

Wholesale Electricity Spot Market (WESM) charges also rose by P0.0150 per kWh due to increased demand and capacity outages on the Luzon grid.

Transmission charges increased by P0.0724 per kWh, primarily due to higher backup service costs from the WESM Reserve Market and increased taxes and other fees.

Distribution charges, however, remained unchanged since the P0.0360 per kWh reduction implemented in August 2022.

Zaldarriaga said the rate hike translates to an estimated P85 increase in the monthly bill for a household consuming 200 kWh.

Zaldarriaga, meanwhile, said that customers in areas under a state of calamity due to Severe Tropical Storm Kristine will not face disconnection until December. Installment payment plans are also available to assist typhoon-affected customers.

Meralco also reminded the public to avoid illegal connections, which can cause safety hazards and power interruptions. Illegal connections are punishable under Republic Act No. 7832 with imprisonment and fines.

Related Tags

Electricity Bills Manila Electric Co. (Meralco)
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