MANILA — Electricity rates increased this month as higher generation costs, driven by elevated wholesale electricity prices, rising fuel costs, and the weakening peso, pushed up consumers’ power bills, Manila Electric Company (Meralco) announced Thursday.
Meralco said the overall rate for a typical household rose by P0.1488 per kilowatt-hour (kWh), bringing the June rate to P14.4833 per kWh from P14.3345 per kWh in May.
For residential customers consuming 200 kWh, the adjustment translates to an additional P30 in their monthly electricity bill.
The increase was primarily driven by a higher generation charge, which climbed by P0.2762 per kWh to P9.0704 per kWh.
Meralco attributed the increase largely to higher prices in the Wholesale Electricity Spot Market (WESM), where rates rose to P7.0281 per kWh amid tight supply conditions in the Luzon grid.
The Luzon grid was placed under Red Alert status from May 13 to 15 after electricity demand exceeded last year’s record levels while several generation and transmission constraints reduced available supply.
Power supply agreement (PSA) charges also increased due to the continued depreciation of the peso and higher global prices of coal and liquefied natural gas (LNG).
Meanwhile, charges from the Sta. Rita and San Lorenzo gas plants declined by P0.1569 per kWh due to improved dispatch, helping offset some of the increase in generation costs.
PSAs accounted for 69 percent of Meralco’s energy requirements during the period, while First Gas/Prime CoreGen supplied 21 percent and the WESM accounted for 10 percent.
Tempering the increase was a reduction in transmission charges, which fell by P0.1525 per kWh. Taxes and other charges, however, posted a net increase of P0.0251 per kWh.
Consumers also continue to benefit from Meralco’s ongoing refund equivalent to P0.4278 per kWh for residential customers.
Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga said higher electricity consumption during the extreme heat experienced in May is also expected to contribute to larger electricity bills this month.
“While there is an increase in electricity rates this month, elevated consumption patterns observed in May are also a major factor that could drive higher power bills of customers,” Zaldarriaga said.
The company urged customers to monitor their electricity usage and adopt energy-saving practices such as regularly cleaning air-conditioner filters and electric fan blades, using LED bulbs, avoiding overloading refrigerators, and ironing clothes in bulk.
Meralco also reminded consumers not to post copies of their electricity bills on social media, warning that these contain personal information that may expose customers to cybersecurity risks.
The distribution utility noted that its distribution charge has remained unchanged since August 2022, when it implemented a P0.0360 per kWh reduction for residential customers.
