Meralco poised to hike power rate this month

The Manila Electric Company (Meralco) is set to increase its generation charge this month following the recent shutdown of several power plants that forced the company to buy electricity at a higher price from the spot market, the Energy Regulatory Commission (ERC) announced on Wednesday.

 

In a report aired on GMA News' “24 Oras”, the ERC said Meralco had yet to submit its computation that would specify the exact amount of increase. 

 

The ERC, however, said that the increase would just be minimal as the regulatory body was still implementing a secondary price cap on electricity traded in the wholesale electricity spot market (WESM).

 

Last month, power supply in Luzon grid dropped to critical levels after the San Lorenzo and Iligan powerplants in Batangas as well as a transformer of the National Grid Corporation of the Philippines (NCGP) in Dasmariñas, Cavite went down due to technical problems.

 

The two plants' shutdown coincided with the scheduled maintenance shutdown of the Malampaya Natural Gas Facility.

 

In anticipation of the increase in electricity prices due to the power plants' shutdowns, the ERC on June 24 has extended for 45 days or until August 9 the secondary price cap on electricity from WESM, which expired on June 25.

 

The secondary price cap of P6.245/kWh will be implemented if the power price of WESM reaches P8.186/kWh for over 72 hours or three consecutive days.

 

Meanwhile, party-list group Bayan Muna urged the ERC to investigate the unscheduled shutdowns of several power plants last month, saying that these powerplants should be held accountable for disrupting the supply.

 

“May breach ka ng contractual obligations mo to supply electricity so dapat may penalty ka commensurate sa itataas ng kuryente kung ika'y nag shutdown at tumaas ang kuryente,” Bayan Muna party-list Representative Neri Colmenares said in an earlier report. —Elizabeth Marcelo/NB, GMA News