HIGHER ELECTRIC COSTS STARTING OCTOBER, BY OVER P0.33 PER KWH - ERC
Meralco will be implementing an increase to recover fuel costs of its gas plants for 12 months (Photo courtesy of Philippine Daily Inquirer)
Starting October 2024, the power rates of Manila Electric Company (Meralco) will be higher as the Energy Regulatory Commission (ERC) allowed the power distributor to collect pass-through costs from its natural gas-fired power plants.
In a resolution released by ERC, it said that Meralco is authorized to reflect the adjusted rates from the gas plants -First Gas Power Corp. and FGP Corp.- starting from the October customer billing period.
“Further, FGPC and FGP are hereby allowed to recover, and Meralco is authorized to collect from its customers, the difference between the previously approved pass-through costs particularly as such pertain to the landed cost of LNG (liquefied natural gas) and the New GSPA (Gas Sale Purchase Agreement), over a period of 12 months commencing from the October customer billing period of Meralco,” the resolution read.
The estimated increase seen by ERC is up to 33 centavos per kilowatt-hour (kWh). Households consuming 200 kWh may see an increase of P66 in their monthly electricity bill for 12 months. The amount consists of an additional 30 centavos due to LNG use and rebased natural gas price and another 2 centavos to 3 centavos differential to be collected over 12 months.
However, the final amount would depend on the blend of fuel the companies will use, which they can source from indigenous gas, liquid fuel, and imported LNG.
“We confirm receipt of the Notice of Resolution from the Energy Regulatory Commission (ERC) approving the implementation of adjusted rates to cover the costs of First Gas plants supplying to Meralco,” Meralco said.
“While we have yet to do the final computations, rest assured that Meralco will duly inform the ERC and public about the actual impact of this order on the power rates,” it added.
Source: Manila Standard
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