Meralco sees mixed movements in June electricity bills
Consumers may see mixed movements in their electricity bills this June, according to the Manuel V. Pangilinan-led Manila Electric Co. (Meralco).
In a statement sent by Meralco on Thursday, June 5, the distribution utility (DU) attributed this month’s upcoming power rates to a potential increase in the reserve market prices.
“We are still waiting for all the final billings from our suppliers for the computation of power rates for the June billing period,” it stated.
“Initial information shows a possibility of an increase in the transmission charge due to a possible uptick in reserve market prices for the May supply month in comparison with the previous month based on publicly available data,” Meralco further explained.
Transmission charges are the fees for delivering electricity from power plants to DUs through National Grid Corp. of the Philippines’ (NGCP) network.
Reserve market prices, on the other hand, affect the ancillary service (AS) rates of the transmission grid operator, and will then reflect in consumers’ prices.
“In terms of the generation charge, we hope it remains flattish and that there will be no significant movement for the June billing month following the significant decrease last May,” it added.
Meralco hoped that potential price increases could be offset by the lower rates found in the Wholesale Electricity Spot Market (WESM).
Earlier this week, the average spot market price saw a significant 11-percent drop to ₱4.11 per kilowatt-hour (kWh), as reported by the Independent Electricity Market Operator of the Philippines (IEMOP).
“We also hope that the continued implementation of the ₱19.96-billion refund, which was approved by the Energy Regulatory Commission (ERC), will help mitigate possible increases in power bill components,” Meralco added.
To recall, the ERC ordered Meralco to refund ₱19.95 billion to its customers over a 36-month period starting April, following the approval of a provisional authority. The refund, equivalent to around ₱0.1189/kWh across customer classes, covers over recoveries in electricity rates from July 1, 2022, to Dec. 31, 2024.
Last month, Meralco announced a ₱0.7499/kWh drop in its power rates, resulting in a ₱12.2628/kWh decline in the overall rate for a typical household.