Meralco electricity rate now at P13/kWh

Meralco said higher generation charge, mainly due to surge in Wholesale Electricity Spot Market (WESM) prices, has driven the increase in electricity rate this month. (Pexels Photo)

By Kris Crismundo, Philippine News Agency

MANILA –The Manila Electric Company (Meralco) announced Friday the PHP0.7226 per kilowatt hour (kWh) hike in power rate for April, increasing electricity charges to PHP13.0127 per kWh from PHP12.2901 per kWh in March.

Meralco said higher generation charge, mainly due to surge in Wholesale Electricity Spot Market (WESM) prices, has driven the increase in electricity rate this month.

Overall generation charge went up by PHP0.7278 per kWh.

Meralco said the tighter supply in the Luzon grid, which was placed under yellow alert on March 5, triggered the increase in WESM prices.

“Charges from Power Supply Agreements (PSAs) increased by PHP0.2811 per kWh following the expiration of the 400 MW PSA with Limay Power Inc. on February 25,” Meralco said in a statement.

On the other hand, charges from independent power producers (IPPs) tempered the overall generation charge. IPP rate declined by PHP0.4738 per kWh.

“WESM, PSAs, and IPPs accounted for 23 percent, 44 percent, and 33 percent, respectively, of Meralco’s total energy requirement for the period,” the distribution utility said.

Meralco added that transmission and other charges were also higher for this month.

Transmission fee for residential customers rose PHP0.0809 per kWh, while other charges, including taxes, also went up by PHP0.1163 per kWh.

“Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively; while taxes, universal charges, and Feed-in Tariff Allowance are all remitted to the government,” Meralco said.

“Meralco’s distribution charge, on the other hand, has not moved since the PHP0.0360 per kWh reduction for a typical residential customer beginning August 2022,” it added.