Meralco raises March rates by 64 centavos per KwH

On top of rising fuel costs, higher electricity bills await consumers this month as power distributor Manila Electric Co. (Meralco) has announced an increase of 64 centavos per kilowatt hour (kWh).

The hike will push the overall rate for a typical household to P13.8161 per kWh in March from P13.1734 per kWh in February.

This means that a residential household consuming 200 kWh will see their electricity bill go up by P129 this month.

In a media briefing on Tuesday, Meralco attributed the power to higher transmission and generation charges.

The transmission charge went up by 28 centavos per kWh while generation costs climbed by 22 centavos per kWh.

“Pass-through charges, such as generation and transmission charges, are paid by Meralco to the power generators and the grid operator,” Meralco vice president and head of corporate communications Joe Zaldarriaga said.

No link to Middle East

He clarified, however, that there was no connection between the Middle East conflict and the power rate adjustment.

“This is not yet included. The crisis in the Middle East has not yet been factored in. We will start to feel its impact in April,” Zaldarriaga said.

Energy Secretary Sharon Garin said the impact of the Middle East tension, which has sent fuel prices surging, could lead to a 16-percent increase in electricity rates.

However, officials from Meralco are unable to provide estimates as they continue to monitor developments in the war-torn region.

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“We cannot yet say how large the impact will be because we are still waiting to see how long the situation in the Middle East will last. We also need to see how long its effect on fuel prices will persist, particularly on liquefied natural gas used by major power plants in the Philippines, especially those in Batangas,” said Lawrence Fernandez, Meralco vice president and head of utility economics.

The weakening of the peso against the US dollar will also impact the costs of suppliers which are dollar-denominated, he added.

The Philippine peso plunged to its weakest close at 59.5 to the US dollar on Monday.

Meralco officials said the anticipated higher adjustments could be attributed to the “seasonality of consumption” as customers use more electricity during the hotter months, which usually start in March.

Meralco delivers power to Metro Manila, Bulacan, Cavite, Rizal and selected areas in Pampanga, Laguna, Batangas and Quezon.