Meralco power rates seen climbing in February bill
Electricity consumers in the National Capital Region and nearby provinces might see an increase in their electricity bills this February due to several pass-through charges, according to Manila Electric Co. (Meralco).
Based on initial indications from the utility giant, the generation charge could rise due to more expensive power rates at the Wholesale Electricity Spot Market (WESM), particularly in Luzon.
WESM is a platform through which electricity is traded between producers and distributors to boost their supply.
Last week, the Independent Electricity Market Operator of the Philippines said the systemwide WESM prices logged a huge drop to P3.56 per kilowatt-hour (kWh) from P4.38 per kWh in December last year.
However, the Luzon grid still booked a jump of 9 percent. Average spot prices reached P3.25 per kWh from P2.98 per kWh.
Aside from WESM rates driving prices higher, the weakening of the local currency could also hit suppliers’ costs that are dollar-denominated.
“There is also a possible increase in transmission charge due to higher market prices for regulating and contingency reserves,” said Joe Zaldarriaga, Meralco vice president and head of Corporate Communications.
Additional subsidy
“In addition, we will see the start of the implementation of a new rate for the UCME this billing month as approved by the ERC (Energy Regulatory Commission),” Zaldarriaga said.
He was referring to the universal charge for missionary electrification. This is a subsidy that on-grid consumers pay to make electricity cost lower for those in off-grid and remote areas.
“That is equivalent to an additional 8 centavos per kWh, to be collected from all on-grid electricity end-users,” Zaldarriaga said.
Meralco will announce the final rate for the month on Tuesday.
Last month, Meralco implemented a rate cut of P0.1637 per kWh.
Late in January, the ERC allowed Meralco and four power generators to recover more than P31 billion, or 28 centavos per kWh, starting this March.
Meralco may bill this throughout a period of 12 months to 36 months, or until the amount is fully recovered.
The group is the country’s biggest power distributor, serving Metro Manila, Bulacan, Cavite, Rizal and some parts of Pampanga, Laguna, Batangas and Quezon.
