Meralco hikes rates in March amid expensive energy prices
MANILA, Philippines — Listed utility firm Manila Electric Co. raised its power rate in March after a scheduled maintenance of Malampaya facility pushed up generation costs for the month.
In a statement on Friday, Meralco said its overall electricity rate went up by P0.5453 per kWh to P11.4348 per kWh this month.
That means a typical household consuming 200 kWh every month could see a P109 increase in their March bill.
Explaining the adjustment, Meralco said generation charge went up by P0.4636 to P7.3790 per kWh in March, after the company paid more for electricity it distributed to its franchise area.
Jose Ronald Valles, head of the company’s regulatory management office, said the March rate would have been higher if not for the delayed collection of around P1.1 billion generation costs. The deferred costs will be billed on a “staggered” basis over the next two months.
“We took the initiative to cushion the impact in the bills of our customers by coordinating with some of our suppliers to defer collection of portions of their generation costs,” Valles said.
The increase in energy prices was triggered mainly by a 15-day, maintenance shutdown of the Malampaya facility last month. The supply gap left by the temporary closure of Malampaya prompted Meralco to buy electricity from other sources with higher charges.
Meralco said prices from independent power producers (IPPs) went up by P0.5784 per kWh after the Malampaya closure forced some power plants to use more expensive alternative fuel to ensure continuity of supply.
The peso’s depreciation also affected 98% of IPP costs that are dollar-denominated. IPPs accounted for 35% of Meralco’s total energy requirement for the period.
Meanwhile, higher demand in the Luzon grid pushed up costs at the spot market, where energy prices are more expensive than pre-agreed supply deals. Wholesale Electricity Spot Market (WESM) charges were higher by P1.4795 per kWh.
Meanwhile, charges from Power Supply Agreements (PSAs) remained generally flat, largely due to the deferral of collection of a portion of costs. PSAs covered 43% of Meralco’s total requirement in the last supply month.
All other charges, including transmission charge and taxes, registered a net upward adjustment of P0.0817 per kWh. — Ramon Royandoyan
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