OVER P77 INCREASE IN MERALCO BILLS FOR SEPTEMBER

Meralco is increasing power rates by P0.1543 per kilowatt-hour this month which marks the third straight month of hikes (Photo courtesy of Philippine Daily Inquirer)

Manila Electric Company (Meralco) customers should expect a higher electricity bill for the month of September due to higher transmission costs as the power distributor hiked its household rate.

The Meralco announced that the electricity rates have increased by P0.1543 per kilowatt-hour (kWh) increasing this month’s per kWh rate to PHP11.7882 from PHP11.6339 in August, equivalent to an increase of around P31 for residential customers consuming 200 kWh.

A household consuming 300 kwh will have an increase of P46, P62 will be added for 400 kwh consumption, and by P77 for consuming 500 kwh. This is the third consecutive month that the distribution utility (DU) increased its power rate.

According to Meralco vice president and head of corporate communications Joe Zaldarriaga, the increase was due to the P0.2913 per kWh hike in the transmission charge for residential customers.

“Due to higher ancillary service charges following the resumption of commercial operations of the Reserve Market on Aug. 5, 2024. Overall, the transmission charge for the period increased, which in turn made electricity rates rise and offset the reduction in the generation charge,” Zaldarriaga stated.            

The total ancillary service charges from the Reserve Market were double the charges from the National Grid Corporation of the Philippines' (NGCP) Ancillary Service Procurement Agreements (ASPAs). 

“The main reason for the increase of the transmission charge this month is mainly due to the increase in ancillary service charge brought about by the resumption of the Reserve Market on August 5, 2024," he added.

Meralco added that the decrease in generation charge was primarily driven by the peso's appreciation to its strongest level since December 2023, which led "To the P0.2371 per kWh and P0.0529 per kWh reductions in PSA and IPP charges, respectively."

On its earlier advisory, the power distributor said that that customers should expect an increase in generation costs next month following the ERC's approval of the implementation of adjusted rates for the two plants in First Gas and Sta. Rita and San Lorenzo.

Source: GMA Integrated News 

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