Meralco hikes power rates this month

Manila Electric Company (Meralco) customers will face higher electricity bills this March following an increase of P0.2639 per kilowatt-hour (kWh), the company announced last week. This adjustment raises the overall rate to P12.2901 per kWh from February’s P12.0262 per kWh.

For households consuming 200 kWh, this translates to an additional P53 on their monthly bill.

Meralco attributed the rate hike to the end of a one-time refund implemented in February, higher transmission charges, and an increase in the feed-in tariff allowance (FIT-All). 

The previous refund, mandated by the Energy Regulatory Commission (ERC), provided a temporary reduction of P0.2264 per kWh, which is no longer in effect.

Transmission costs also rose by P0.1294 per kWh due to higher service fees from the National Grid Corporation of the Philippines. 

Additionally, the ERC approved a higher FIT-All rate of P0.1189 per kWh, up from P0.0838 per kWh, leading to a P0.0351 per kWh increase.

Despite these adjustments, a decrease in generation charges helped offset some of the increase. Meralco reported that generation costs dropped by P0.1686 per kWh to P7.0517 per kWh, driven by lower prices from its energy suppliers. Independent Power Producers (IPPs), Power Supply Agreements (PSAs), and the Wholesale Electricity Spot Market (WESM) accounted for 31%, 47%, and 22% of Meralco’s total power supply, respectively.

As the dry season approaches, Meralco Vice President and Corporate Communications Head Joe Zaldarriaga advised customers to practice electrical safety to prevent fire hazards. 

He emphasized the importance of avoiding overloaded outlets, replacing damaged wiring, unplugging unused appliances, and keeping flammable materials away from heat sources.

Meralco also urged consumers to adopt energy-saving measures, as electricity demand typically rises by 20% to 33% during the hot months due to increased use of cooling appliances.