For residential consumers using 200 kWh, this translates to an estimated P57 increase in their total electricity bill for the month.
Generation charge fuels rate hike
The primary driver of this month's rate increase is the generation charge, which jumped by P0.3845 per kWh due to higher costs from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs).
IPP charges rose by P0.8355 per kWh, attributed to:
Lower plant dispatch from some power facilities
Peso depreciation, which affected 97 percent of IPP costs tied to the US dollar
Higher liquefied natural gas (LNG) terminal fees for First Gas Sta. Rita and San Lorenzo
Scheduled maintenance outage of Quezon Power in January, in line with the Department of Energy’s Grid Operating and Maintenance Program
Similarly, PSA charges increased by P0.0837 per kWh due to the weaker peso, which impacted 61 percent of PSA costs linked to foreign exchange rates.
WESM offsets some increases
Tempering the overall rate hike was a P0.3005 per kWh decrease in charges from the Wholesale Electricity Spot Market (WESM).
A decline in both average and peak demand for electricity in the Luzon grid helped offset the cost impact of increased power plant outages.
Meralco sourced 29 percent of its energy requirements from IPPs, 43 percent from PSAs, and 28 percent from WESM for the period.
Other charges, fees unchanged
The transmission charge for residential customers slightly declined by P0.0013 per kWh, helped by lower ancillary service charges. However, taxes and other pass-through charges rose by P0.1289 per kWh, including a P0.0171 per kWh increase in Universal Charge-Missionary Electrification rates as approved by the Energy Regulatory Commission (ERC).
Meanwhile, the February rates reflected a one-time downward adjustment of P0.2264 per kWh and another P0.0023 per kWh reduction, both related to regulatory fees, per ERC directives.
Meralco clarified that pass-through charges for generation and transmission costs are paid directly to power suppliers and the grid operator, while taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) go to the government.
The company’s distribution charge has remained unchanged since August 2022. — Ed: Corrie S. Narisma
