Meralco household rate up by 28 centavos in February

Customers of Manila Electric Company (Meralco) should brace for higher electricity bills this month as the power distributor implements an increase in its household rate.

Meralco on Tuesday announced it is increasing its household electricity rate by 28.34 centavos per kilowatt-hour (kWh) for February, up from P11.728 per kWh in January. This will translate to an increase of around P57 in their total electricity bill.

The upward adjustment could translate to an increase of P57 in the monthly bill of a typical customer consuming 200 kWh.

The adjustment comes as generation charges increased by 38.45 centavos per kWh due to higher costs from Independent Power Producers (IPPs) which increased by 83.55 centavos per kWh mainly due lower average plant dispatch, the weaker peso, and higher liquefied natural gas (LNG) terminal fees.

The depreciation of the peso also affected 61% of the power supply agreement (PSA) costs, bringing this higher by 8.37 centavos per kWh.

These were slightly tempered by lower charges from the Wholesale Electricity Spot Market (WESM) by 30.05 centavos per kWh, as both the average and peak demand in the Luzon grid declined during the period.

"We reiterate our call to all our customers to continue practicing energy efficiency as way of life especially with the upcoming summer months," Meralco vice president and head of corporate communications Joe Zaldarriaga said in the advisory.

Meralco constructs, operates, and maintains electric distribution systems in the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal, as well as certain areas in the provinces of Batangas, Laguna, Pampanga, and Quezon.

The firm counts as subsidiaries and associates Vantage Energy Solutions and Management Inc. and MeridianX Inc., acting as retail electricity suppliers in Luzon and the Visayas. — AOL/ VDV, GMA Integrated News