The Manila Times
(UPDATE) POWER distributor Manila Electric Co. (Meralco) announced on Friday that its rates will go up in April due to an increase in the generation charge resulting from the weakening of the peso against the dollar. Mainly, the P0.5335 per kilowatt-hour (kWh) add-on will bring the overall rate for a household to P14.3496 per kWh this month from P13.8161 per kWh in March. This means that for residential customers with a typical consumption of 200 kWh, the adjustment will translate to an increase of around P107 in their total electricity bill. Meralco said the P0.5257 per kWh increase in the generation charge brought about by the weakening of the peso against the US dollar affected the First Gas Sta. Rita and San Lorenzo gas plants (First Gas) and some of Meralco’s other power supply agreements (PSAs) that depended on the dollar. Meralco said that due to this development, charges from First Gas and PSAs went up by P1.2342 and P0.1989 per kWh, respectively. Meanwhile, the Wholesale Electricity Spot Market (WESM) also increased by P2.3955 per kWh due to tight supply in the Luzon grid, mainly driven by a seasonal demand increase averaging 579 MW. First Gas, PSAs, and WESM accounted for 20 percent, 74 percent, and 6 percent, respectively, of Meralco’s total energy requirement for the period. Conversely, the transmission charge for residential customers dropped by P0.0656 per kWh during the period due to lower ancillary service charges incurred by the National Grid Corp. of the Philippines (NGCP) from the Reserve Market. Other charges, including taxes, on the other hand, registered a net increase of P0.0734 per kWh. Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and renewable energy subsidies are all remitted to the government. Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer in August 2022. Meralco also noted that residential consumers continue to benefit from the ongoing Actual Weighted Average Tariff (AWAT) adjustments/ refund during the period, amounting to P0.2024 per kWh. Lastly, Meralco noted that the reason the big increase in fuel prices did not impact the increase in electricity rates in April is that the fuel used during the period was already purchased before the war in the Middle East began. It noted, however, that the effects of the war could happen in May instead. “The reason why electricity rates did not increase by much for this month is that we purchased these fuels long before the war in the Middle East happened. However, these circumstances will definitely affect rates in May, but other factors can still happen and help temper the effect,” Meralco vice president and head of Utility Economics Lawrence Fernandez said in an online briefing. On another note, Meralco announced that, in accordance with the Energy Regulatory Commission’s (ERC) new uniform national lifeline consumption threshold for marginalized and low-income households, including members of the Pantawid Pamilyang Pilipino Program (4Ps), qualified customers consuming 50 kWh or less will get a 100 percent discount on their electricity rates starting this April. Meralco added that it will likewise continue to implement its existing lifeline discounts beyond the national threshold, granting a 35 percent discount for qualified customers consuming 51 to 70 kWh and a 20 percent discount for those consuming 71 to 100 kWh.
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