Over P0.30/kWh Meralco rate hike looms starting October — ERC

Customers of the Manila Electric Company (Meralco) should brace for higher electricity costs in the next 12 months starting October after the Energy Regulatory Commission (ERC) granted the power distributor’s application to adjust the rates of power it sources from natural gas-fired power plants.

In a three-page resolution, the ERC said Meralco is authorized to reflect the adjusted rates from the gas plants —First Gas Power Corp. and FGP Corp.— starting from the October customer billing period.

“Further, FGPC and FGP are hereby allowed to recover, and Meralco is authorized to collect from its customers, the difference between the previously approved pass-through costs… particularly as such pertain to the landed cost of LNG (liquefied natural gas) and the New GSPA (Gas Sale Purchase Agreement), over a period of 12 months commencing from the October customer billing period of Meralco,” the resolution read.

In a separate message to reporters, ERC chairperson Monalisa Dimalanta explained  that the additional cost to be expected by Meralco customers could amount to 32 centavos to 33 centavos per kilowatt-hour (kWh) monthly for 12 months.

Dimalanta said the amount consists of an additional 30 centavos due to LNG use and rebased natural gas price and another 2 centavos to 3 centavos differential to be collected over 12 months.

The ERC chief said that the amount is not fixed per month as “actual amount will depend on the blend or mix of fuel” —imported LNG and indigenous gas— to be used by the power generation companies.

For a typical customer consuming 200 kWh, the additional cost to be expected in a month could go as high as P66.

“So yung consumers na 200kWh ang consumption… [for example] P0.33 x 200 = P66 increase in his rates for one month,” she said.

Meralco raised rates by P0.0327 per kWh this month, bringing the overall rate for a typical household to P11.6339 per kWh from P11.6012 per kWh in July.

This translates to an increase of around P7 for residential customers consuming 200 kWh.

The power distributor had also warned of a possible increase in household rates once the new GSPA is approved by the ERC.

“We confirm receipt of the Notice of Resolution from the Energy Regulatory Commission (ERC) approving the implementation of adjusted rates to cover the costs of First Gas plants supplying to Meralco,” Meralco said in a separate statement.

The company said these higher fuel costs under the new GSPAs.

“As we have announced earlier this week, this will affect the generation charge—which comprises the biggest chunk of customers’ electricity bills,” Meralco said.

“While we have yet to do the final computations, rest assured that Meralco will duly inform the ERC and public about the actual impact of this order on the power rates,” the power distributor said.—RF, GMA Integrated News