Meralco increases power rates for June

June 10, 2022 Arlene Rivera 366 views

THE Manila Electric Company (Meralco) announced on Friday a power rate increase for the month of June.

In an advisory, Meralco said the overall rate for a typical household in June will go up by P0.3982 per kWh.

For a residential customer consuming 200 kWh, the overall rate will be P10.4612 from P10.0630 per kWh last month, equivalent to an increase of around P80 in the total bill.

For the June billing, the generation charge went up by P0.3313 to P6.5590 per kWh from P6.2277 per kWh the previous month.

Charges from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) increased by P0.6083 and P0.0859 per kWh, respectively, mainly due to higher fuel costs.

Fuel charges from the First Gas power plants increased by 8% with the increased usage of more expensive liquid fuel amid the ongoing Malampaya gas supply restriction.

Coal prices also went up by an average of 23%, contributing to the higher IPP and PSA charges.

Meanwhile, prices in the Wholesale Electricity Spot Market (WESM) remained elevated, with the secondary price cap imposed twice in the last supply month (April 29 and 30).

Peak demand in the Luzon grid reached a record 12,113 MW in May following the continued easing of mobility restrictions and consequent increase in economic activity.

This month’s generation charge includes the last three installments covering the deferred generation costs for the March bill and the second of three installments for the April bill.

These accounted for around P0.20 per kWh of the generation charge.

Transmission charges for residential customers slightly increased to P0.0083 per kWh, while taxes and other charges also registered a net increase of P0.0586 per kWh.

The collection of P0.0025 per kWh representing the Universal Charge-Environmental Charge remains suspended as ordered by the ERC.

The implementation of distribution-related refunds continues to temper the overall power rate. For residential customers, the total refund is equivalent to P0.9353 per kWh.

Meralco reiterated that it only earns from distribution, supply, and metering charges which have remained unchanged since the reduction in July 2015.

Meanwhile, pass-through charges from generation and transmission are paid to the power suppliers and the system operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) are all remitted to the government.