The electric bills to be dispatched by power utility giant Manila Electric Company (Meralco) and other power utilities will practically be knocking on forbidden doors this May – but consumers will have no choice but to finally face the ‘fear factor’ of soaring expenses for electricity consumption in the forthcoming billing cycle.

Meralco has already put forward projection of definitive rate hike for May, and the only consolation provided is for it not probably reaching P1.00 per kilowatt hour.

It was noted that other power utilities, primarily the electric cooperatives (ECs) servicing regional areas – especially those that are highly exposed to the spot market are anticipating rate spikes going as high as P3.00 to P5.00 per kWh.

To ease predicaments on consumers’ wallets and paychecks, the Energy Regulatory Commission (ERC) has also advanced appeal on prospective staggering of rate hikes pass-on by the power utilities, especially for May billing due to the protracted red and yellow alerts which triggered series of spikes in spot prices.

The regulatory body is just hoping that the supply portfolio of many distribution utilities (DUs) had been covered by bilateral contract quantities (BCQs), because that is the only way that they can shield themselves from unwarranted high exposure in the Wholesale Electricity Spot Market.

According to Meralco Vice President and Corporate Communications Head Joe Zaldarriaga, “indications point to higher generation charge this month,” although he qualified that they are still finalizing the calculations for the overall pass-on rate.

He explained that the tariff spike “is mainly due to higher WESM prices brought about by the tight supply condition, as power demand surged along with higher heat indices.”

Data previously released by the ERC had shown prices escalating between P10.00 to P13.00 per kWh across trading intervals at the WESM when Luzon and Visayas grids were pummeled by red and yellow alerts starting April 16 this year.

In Meralco’s estimate, “peak demand in Luzon increased by about 2,400 MW (megawatts) compared with the March supply month,” emphasizing that in April alone, “the Luzon grid recorded six (6) days of yellow and five (5) days of red alerts.”

There were also instances of sporadic power interruptions (uniquely termed as rotational brownouts for Filipinos) in various parts of Luzon, including some areas in Metro Manila.

Until this time, Luzon grid is still pounded by yellow alerts or insufficiency of power reserves to reliably run the power system, hence, Meralco is reiterating its appeal to the public for them to continue “practicing energy efficiency to have better management over their power consumption and electricity bills.”

When power supply in Luzon turned extremely precarious, Meralco, in particular, had to take recourse on the government-underpinned interruptible load program (ILP) not just to ease demand in the biggest power grid, but to also save the country’s business centers from economic losses.

The ILP would require big-ticket customers to switch on their own generating facilities, but that band-aid solution is not just costly, it similarly increases the country’s carbon footprints which may serve as added assault to the warming planet.