Manila Electric Company (Meralco) today announced an upward adjustment in electricity rates by P0.6427 per kWh this March, bringing the total rate for a typical household to P13.8161 per kWh this month from P13.1734 per kWh in February. For residential customers with a typical consumption of 200 kWh, this adjustment translates to an increase of about P129 in their total electricity bill.
Higher transmission, generation charges push up overall rates
The overall rate increase this month was due to a P0.2880-per-kWh increase in transmission charges for residential customers.
The higher transmission charge was due to a 70% increase in the ancillary service charge charged by the National Grid Corporation of the Philippines (NGCP) from the reserve market. The cost of the reserve market constituted almost half of the total transmission charges in this billing month.
Meanwhile, the generation fee increased from P0.2209 per kWh to P7.8607 per kWh.
The tariff determined from the second extension of the Power Purchase Agreement (PPA) with First Gas-Sta. Rita added about P0.38 per kWh to this month's generation charges. Due to the improvement in supply conditions in the Luzon grid, tariffs from the Wholesale Electricity Spot Market (WESM) decreased by P1.0952 per kWh.
This month's generation charge already includes the P0.2817 per kWh contract price adjustment of ACEN Corporation, Panay Energy Development Corporation, South Premier Power Corporation (SPPC) and Sual Power Inc. (SPI) approved by the Energy Regulatory Commission (ERC). This equates to approximately P789 million of generation costs for this billing month, the impact of which was offset by the completion of the recovery of SPPC and SPI's previous contract price adjustments, totaling P858 million or approximately P0.30 per kWh.
Meanwhile, other charges including taxes recorded a net increase of P0.1338 per kWh.
This month's rate also reflects the implementation of the new uniform national lifeline subsidy rate of P0.01 per kWh as per the recent ERC directive.
Pass-through charges for generation and transmission are paid to electricity suppliers and the grid operator respectively; Whereas taxes, universal fees and renewable energy subsidies are all sent to the government.
Meralco's distribution charge, on the other hand, has not increased since it was cut by P0.0360 per kWh for a typical residential customer in August 2022.
Meralco supports government's call for energy efficiency amid Middle East conflict and dry weather
In line with government directives on energy-saving measures amid the ongoing conflict in the Middle East, Meralco is urging customers to continue practicing energy efficiency to better manage consumption as the country also prepares for the dry season, when demand traditionally peaks.
Reminder President Ferdinand R. Marcos, Jr.'s call for government offices to implement conservation measures and his appeal to the public to adopt energy-saving practices, as the global fuel market remains volatile due to geopolitical uncertainties.
The situation coincides with the dry season, when electricity demand historically increases by 20% to 33% due to increased use of cooling devices such as air conditioners. With higher temperatures forecast to increase consumption, households and businesses alike are encouraged to take proactive steps in managing their energy use.
Meralco Vice President and Head of Corporate Communications Joe R. “We are entering a period when electricity demand has traditionally peaked and external factors are putting upward pressure on energy costs,” Zaldarriaga said. “By adopting energy efficiency, consumers can have better control over their electricity bills and, at the same time, contribute to reducing the impact of external factors on electricity costs.”
Some energy efficiency tips customers can follow include unplugging appliances when not in use; Using natural light when and where possible; And ironing large batches of clothes at one time. They are also advised to set the air conditioner at 25 degrees Celsius and ensure proper maintenance and avoid overloading the refrigerator so that there is proper circulation of cool air inside.
Customers can report their electricity service concerns through the My Meralco app or through Meralco's official social media accounts on Facebook (www.facebook.com/meralco) and ex Twitter (@meralco). They can also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco hotline 16211.
Spotlight is a sponsored section of Businessworld that allows advertisers to enhance their brands and connect with Businessworld's audience by publishing their stories on the Businessworld web site. For more information, send an email online@bworldonline.com.
Connect with us on Viber https://bit.ly/3hv6bLA To get more updates and subscribe to Businessworld's titles and receive exclusive content through www.bworld-x.com.