Meralco raises rates, adds PHP145 for 200 kWh homes

Manila Electric Company (Meralco) announced a PHP0.7226 per kilowatt hour (kWh) increase in electricity rates, raising the charge to PHP13.0127 per kWh for April.

For residential customers consuming 200 kWh, this adjustment equates to an increase of around PHP145 in their total electricity bill.

Joe R. Zaldarriaga, Meralco's vice-president for corporate communications, attributed the hike mainly to higher generation charges due to a surge in Wholesale Electricity Spot Market (WESM) prices and the expiration of the Power Supply Agreement with Limay Power Inc.

Data from WESM showed that rates increased by 95.5% to PHP5.34 per kWh in March, driven by reduced supply and heightened demand; generation charges rose by PHP0.7278 per kWh due to higher costs from WESM and the expired PSA with Limay Power Inc.

Transmission fees for residential customers rose by PHP0.0809 per kWh while other charges including taxes also went up by PHP0.1163 per kWh, contributing to the overall increase.

Despite a partial refund of PHP0.20/kWh approved by the Energy Regulatory Commission starting this month, Meralco expects higher electricity consumption during peak demand periods due to the onset of dry season.