Meralco rates rise due to higher gen charge

Customers of Manila Electric Co. (Meralco) can expect higher electricity bills this month as the generation charge has risen by 51 centavos per kilowatt hour to P5.53 per kWh.

The increase means households consuming about 100 kWh a month will have to pay P51 more, while those consuming 200 kWh will see a P102 increase in their monthly bills. Households consuming 300 kWh can expect a P153 jump in their June power bills.

Meralco, the country’s biggest power distributor, explained in a statement that the 51-centavo-per-kWh increase in the generation charge for June was primarily caused by of its suppliers increasing the generation cost during May.

Meralco currently sources its electricity requirements from the state-run National Power Corp. (Napocor), independent power producers (IPPs), and other energy producers selling power through the Wholesale Electricity Spot Market (WESM).

Purchases from the WESM registered the highest increase, with the average price going up by P1.89 per kWh.

The cost of Napocor energy increased reportedly because of the rise in the proportion of peak purchases, with system peak demand for electricity surging by more than 400 megawatts from April to May. As a result, more electricity was needed during the daytime peak periods, when electricity from generators is more expensive.

Similarly, the average IPP cost increased by 16.2 centavos per kWh—driven largely by the higher fuel costs and peso depreciation. But Meralco claimed that the energy supplied by the IPPs was the cheapest.

Meralco buys from three IPPs—Quezon Power’s coal-fired facility, the 1,000-megawatt Sta. Rita and the 500-MW San Lorenzo natural gas-fired power plants, the latter two of which are owned by the Lopez Group-led First Gas Holdings. The Lopez group holds a 6.6 percent interest in Meralco.

During the May supply month, Meralco sourced nine percent of its power supply from the WESM, 46 percent from the IPP’s and 45 percent from Napocor.