Meralco raises rates by P0.2331 per kWh for October

Meralco announced a P0.2331 per kilowatt-hour (kWh) increase in electricity rates for October, resulting in a higher overall rate of P13.3182 per kWh for a typical household.

Residential customers consuming 200 kWh can expect an additional P47 on their electricity bill, with those consuming 300 kWh, 400 kWh, and 500 kWh paying an additional P70, P93, and P117, respectively.

The primary drivers for this increase are higher generation charges, up by P0.1903 per kWh, due to peso depreciation against the US dollar affecting Independent Power Producers (IPPs) and Power Supply Agreements (PSAs).

Charges from IPPs and PSAs rose by P0.3622 and P0.3567 per kWh, respectively, as the peso's weakness against the US dollar affected their costs.

The peso closed at P58.196 per dollar on Sept. 30, weakening by P1.07 from its P57.13 finish on Aug. 29.

The interim extension of Meralco's power purchase agreement with the First Gas-Sta. Rita plant, approved by the Energy Regulatory Commission (ERC), also contributed to the hike.

Charges from the Wholesale Electricity Spot Market (WESM) decreased amid improved supply-demand conditions.

Additionally, transmission charges increased by P0.0114 per kWh due to higher wheeling rates, and taxes and other charges rose by a total of P0.0314 per kWh.