Meralco’s February rates up due to higher generation charge
The Manila Electric Co. (Meralco) is increasing its electricity rate by 28 centavos per kilowatt hour (kWh) in February, which translates into an additional P57 in the power bills of average households consuming 200 kWh a month.
In a briefing on Tuesday, the company said the upward movement would push its overall rate to P12.0262 from January’s P11.7428 per kWh.
Meralco, which derives its profits from distribution, supply and metering charges, attributed the increase to the higher generation charge.
The generation fee, or the cost of producing electricity, which usually accounts for at least half of a household’s total power bill, rose by P0.3845 per kWh due to more expensive charges from independent power producers (IPP) and power supply agreements (PSA).
According to the company, the IPP charge jumped by P0.8355 per kWh as a result of lower average plant dispatch, higher liquefied natural gas terminal fees, and the weaker peso.
With some supply deals being dollar-denominated, the weaker peso also affected the PSA charge, which rose by P0.0837per kWh.
Meralco said that Wholesale Electricity Spot Market (WESM) charge, however, softened the upward adjustments as it dropped by P0.3005 per kWh.
In a separate briefing with reporters, WESM operator Independent Electricity Market Operator of the Philippines said the system average price in January plunged by 14.3 percent to P2.96 per kWh—its lowest average price recorded since January 2023. The decrease happened amid lower demand due to cooler weather.
The transmission charge, on the other hand, dropped by P0.0013 per kWh as the distribution charge remained flat like it has since August 2022.
On updates about its fifth regulatory period application, Meralco vice president and head of utility economics Larry Fernandez said the group may refund about P19 billion to its consumers after the Energy Regulatory Commission (ERC) ruled that the period from July 2022 to June 2025 was considered “lapsed.” According to Fernandez, Meralco is ready to implement the refund by March or April once the ERC gives its approval.
Meralco’s franchise area covers Metro Manila, Bulacan, Cavite, Rizal, and selected areas in Pampanga, Laguna, Batangas and Quezon.
