Meralco hikes power rate in November

After a rollback last month, the Manila Electric Company (Meralco) is increasing its electricity rate for the month of November, due to higher generation charges for the period.

In an advisory on Wednesday, Meralco announced that its overall rate for a typical household was hiked by 8.44 centavos per kilowatt-hour (/kWh), bringing the overall rate to P9.9472/kWh this month from P9.8628/kWh in October.

The latest rate adjustment translates to an estimated increase of around P17 in the total electricity bill of customers consuming 200 kWh.

Meralco said the slight increase in the overall rate was due to the jump in the generation charge by 7.25 centavos to P6.9917/kWh from P6.9192/kWh.

The uptick in generation charge was on the back of an increase in charges from Power Supply Agreements (PSAs) by 27.11 centavos/kWh “largely due to the scheduled maintenance outage of First Natgas-San Gabriel plant from October 1 to 14.”

“This was mitigated by lower charges from Independent Power Producers (IPPs) and the Wholesale Electricity Spot Market (WESM),” Meralco said.

The power distributor said charges from IPPs decreased by 15.2 centavos, “primarily due to a stronger peso, which affected 99% of IPP costs, and the reduced use of more expensive alternative fuel by First Gas-Sta. Rita.”

Malampaya natural gas prices remained stable following its quarterly repricing that reflected recent movement of international crude oil prices, it added.

Meanwhile, WESM charges slipped by 79.59 centavos/kWh with fewer instances of the secondary price cap imposition, Meralco said.

“During the October supply period, the secondary price cap was triggered 51.64% of the time, down from 55.16% the preceding month,” it said.

Meralco said PSAs, IPPs and WESM accounted for 49%, 45%, and 6%, respectively, of Meralco’s total energy requirement for the period.

Likewise, the company said transmission, taxes, and other charges for residential customers saw a net upward adjustment of 1.19 centavos/kWh.

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

The power distributor said that distribution charge has not moved since the 3.60 centavos/kWh reduction for a typical residential customer beginning August 2022.

“In addition, the four ongoing distribution-related refunds, equivalent to a total of P1.8009/kWh for residential customers, continue to temper customers’ monthly bills,” it said.

“One of the four refunds, equivalent to 46.69 centavos/kWh for residential customers, is expected to be completed this November,” it added.

Meralco said that the other three refunds are expected to be fully completed by December 2022, January 2023, and May 2023 and the impact will subsequently be felt in succeeding billing periods. — RSJ, GMA Integrated News