Meralco power rates up for third straight month

Inquirer file photo

MANILA, Philippines — For the third consecutive month, power distributor Manila Electric Co. (Meralco) will again increase its rates for its nearly 8 million accounts.

The sole electricity distributor in Metro Manila and its suburbs said its September rates went up by P0.1543 per kilowatt hour (kWh), bringing the overall rate to P11.7882 per kWh from P11.6339 per kWh in August.

This translates into a P31 rise in electricity bills for users consuming 200 kWh.

READ: Meralco rates higher by P2 per kWh in July

Meralco said the upward adjustment was triggered by higher transmission charges, or the cost of delivering power supply to the firm’s distribution system, which reached P0.2913 per kWh.

“[This was] due to higher ancillary service charges following the resumption of commercial operations of the reserve market on Aug. 5, 2024,” it said.

The reserve market plays a crucial role in the energy sector as it helps ensure supply availability amid power outages. All power generation companies are allowed to sell their reserves in the “reserves market,” which is integrated into the Wholesale Electricity Spot Market (WESM).

Meralco last cut its rates in June, when the Energy Regulatory Commission ordered power distributors and cooperatives to spread the collection for WESM purchases over four monthly installments.

That order reduced the rate for a typical household to P9.4516 per kWh from P11.4139 per kWh in May.

Generation charge down

Just like last month, the generation charge again recorded a slight drop, dipping by P0.1547 per kWh but it was not enough to cancel the hike in transmission charge.

“If it weren’t for the increase in transmission charge, the rates would have gone down this month,” Meralco vice president and head of corporate communications Joe Zaldarriaga said in a briefing.