Expect Around ₱30 More on Power Bills This Month, Says Meralco

Electricity bills are set to climb this month as the Manila Electric Company (Meralco) announced a ₱0.1520 per kilowatt-hour (kWh) increase in its overall rate for November, bringing the average household rate to ₱13.4702 per kWh from ₱13.3182 in October.

For homes consuming around 200 kWh, the adjustment translates to roughly ₱30 more in their monthly electricity bill.

Transmission and FIT-All Charges Drive Increase

The increase in rates was mainly attributed to higher transmission and feed-in tariff allowance (FIT-All) charges, which are government-mandated charges used to support renewable energy developers.

Meralco said the transmission charge climbed by ₱0.1468 per kWh, reflecting costlier ancillary services procured by the National Grid Corporation of the Philippines (NGCP) from the Reserve Market.

Meanwhile, the FIT-All rose by ₱0.0884 per kWh. This follows the Energy Regulatory Commission’s (ERC) order to apply a new FIT-All rate of ₱0.2073 per kWh, up from ₱0.1189 per kWh.

Offsetting The Cost Impact

The overall increase was partially mitigated by a dip in the generation charge, which fell by ₱0.1008 per kWh to ₱7.9000.

The decline came mainly from Power Supply Agreements (PSAs) and the Wholesale Electricity Spot Market (WESM). PSA rates dropped by ₱0.2985 per kWh amid easing fuel prices, helping offset the weaker peso.

WESM rates likewise decreased by ₱0.6273 per kWh despite tight supply conditions in October, thanks to downward billing adjustments.

In contrast, charges from Independent Power Producers (IPPs) went up by ₱0.2481 per kWh as nearly 99 percent of their costs are dollar-denominated, making them more sensitive to foreign exchange fluctuations.

For the month, Meralco sourced 77 percent of its power from PSAs, 20 percent from IPPs, and 3 percent from WESM.

Other Charges and Distribution Costs

Other components — including system loss, subsidies, taxes, and universal charges (UC) — registered a net increase of ₱0.0176 per kWh. This includes the ERC’s recent move to lift the suspension on the collection of the UC-Environmental Charge, adding ₱0.0025 per kWh.

Meralco clarified that pass-through charges for generation and transmission are remitted to power suppliers and the grid operator, while taxes, UC, and FIT-All go to the government.

The distribution charge, which covers Meralco’s own delivery costs, has remained unchanged since a ₱0.0360 per kWh reduction for typical residential customers took effect in August 2022.

How To Contact Meralco

Meralco welcomes all consumers who experience power interruptions or billing issues to reach them via their official Facebook and X (Twitter) pages (@meralco), through SMS at 0920-9716211 or 0917-5516211, or via the Meralco Hotline (16211).

Source:

https://business.inquirer.net/557532/meralco-to-hike-nov-rates-by-15-centavos-kwh