Meralco expects rollback in March power rate

Customers of the Manila Electric Company (Meralco) may expect a sigh of relief as the power distributor is seeing a possible reduction in its household rate this month.

Meralco spokesperson Joe Zaldarriaga, in a statement, said that “initial indications show lower generation charge this March.”

However, he clarified that Meralco is yet to receive all the billing from its suppliers.

Nonetheless, Zaldarriaga said the expected reduction in generation charge was “due to resumption of operations of the San Buenaventura power plant after undergoing maintenance, and lower WESM prices given the improved supply situation in the Luzon grid.”

Also contributing to the expected electricity rate decrease was the refund in incremental generation charges which corresponded to the increase in natural gas prices under a new gas sale and purchase deal.

To recall, Meralco had announced it would refund its customers for generation charges following adjustment in natural gas prices, which would reflect in the March billing month.

The refund came on the heels of the Energy Regulatory Commission’s (ERC) letter saying that passing of such costs to consumers may be premature pending validation of the basis of such charges.

“We are hoping that this reduction in the generation charge will be able to temper the anticipated increase in transmission charge due to higher ancillary service charges,” Meralco said.

Last month, Meralco raised its household electricity rate by 57.38 centavos per kilowatt-hour (kWh) for February, bringing the power distributor’s overall rate for a typical household to P11.9168 per kWh from P11.3430 per kWh in January.

The upward adjustment translates to an increment of about P115 in the total bill of a residential customer consuming 200 kWh.

The upward adjustment resulted from the increase in generation charge by 45.52 centavos due to higher cost of power from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) amid increased use of imported liquefied natural gas.—RF, GMA Integrated News