Meralco to hike rates this November

Meralco to hike rates this November

Nov 10, 2022, 7:42 AM
Kaithe Santos

Kaithe Santos


The cost of utilizing energy will increase for Meralco customers. For households with a monthly use of 200kWh, an increase of ₱0.0844 or about ₱17.

Manila Electric Co. (Meralco) announced an increase of P0.0844 per kilowatt-hour (kWh), which will result in customers paying more for electricity.

Meralco said the adjustment corresponds to an increase of around ₱17 for households with 200kWh monthly use.

This brings the overall rate for November to ₱9.9472 per kWh from ₱9.8628 per kWh last month. This month’s power rate is higher than ₱9.4630 per kWh announced in November last year and ₱9.7027 per kWh in January this year, Inquirer reported.

The generation charge increased from ₱0.0725 per kWh to ₱6.9917 per kWh, making up more than half of the entire monthly energy bill paid by consumers throughout the period.

The First Natgas-San Gabriel plant's scheduled maintenance outage, which ran from October 1 to October 14, caused the ₱0.2711 per kWh increase in power supply agreement rates, it added.

The increase was mitigated by prices from independent power producers and the Wholesale Electricity Spot Market (WESM). Independent Power Producers' rates decreased by P0.1520 per kWh primarily as a result of a stronger Philippine peso and First Gas-Sta. Rita.

Malampaya natural gas prices remained stable following its quarterly repricing that reflected the recent movement of international crude oil prices.

WESM prices dropped by ₱0.7959 per kWh on the back of fewer impositions of the secondary price cap, a price-mitigating mechanism aimed at protecting consumers against sustained prices in the spot market.

Transmission, taxes, and other charges registered an increment of ₱0.0119 per kWh while the distribution charge remained unchanged since the ₱0.0360 per kWh reduction in August this year.

“In addition, the four ongoing distribution-related refunds, equivalent to a total of ₱1.8009 per kWh for residential customers, continue to temper customers’ monthly bills,” it said.

One of the four refunds, costing ₱0.4669 per kWh for residential customers, is expected to be completed in November, based on the announcement, while the remaining three are expected to be completed by December, January 2023, and May 2023, respectively.

Tags: #Meralco, #Consumers, #electricityrates

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