Meralco warns of possible October electricity rate hike due to peso depreciation

Meralco is signaling a potential increase in electricity bills for October, primarily driven by the weakening peso's impact on dollar-denominated power supply costs.

The depreciation of the peso has increased the costs of imported power, a significant factor in the projected rise of generation charges.

However, this increase might be partially offset by a decrease in prices at the Wholesale Electricity Spot Market (WESM).

Electricity prices in the WESM saw a decline in September, reaching a seven-month low due to increased supply and reduced demand.

Meralco previously announced a rate reduction in September, attributed to lower generation charges from Independent Power Producers and Power Supply Agreements, influenced by a stronger peso and cheaper fuel.