This translates to an increase of about P145 in the monthly bill of a residential customer consuming 200 kWh.
Generation charge increase
The rate hike was primarily driven by a P0.7278 per kWh increase in the generation charge, caused by a sharp rise in costs from the Wholesale Electricity Spot Market (WESM).
WESM charges surged by P3.4205 per kWh in March due to tight supply conditions in the Luzon Grid, which experienced increased demand and capacity outages. The grid was placed on Yellow Alert on March 5, with the secondary price cap triggered 6.39 percent of the time.
Charges from Power Supply Agreements (PSAs) also rose by P0.2811 per kWh, following the expiration of a 400-MW PSA with Limay Power Inc. Meanwhile, charges from Independent Power Producers (IPPs) dropped by P0.4738 per kWh, aided by the peso’s appreciation, as 97 percent of IPP costs are dollar-denominated.
Transmission cost up
The transmission charge for residential users increased by P0.0809 per kWh due to higher ancillary services from the National Grid Corporation of the Philippines. Other charges, including taxes, added another P0.1163 per kWh.
Tempering the increase was the implementation of a distribution rate true-up refund amounting to P0.2024 per kWh, as part of the Energy Regulatory Commission's provisional approval of Meralco's P19.9-billion refund covering July 2022 to December 2024.
Efficient energy use urged
Meralco also announced its readiness for the upcoming midterm elections, having inspected over 3,000 polling sites and deployed crews, generator sets, and floodlights across its franchise area.
With household energy use typically rising 20 percent to 33 percent during the dry season, Meralco urged customers to adopt energy-saving habits, such as using LED lights, cleaning aircon filters, and utilizing the Meralco Appliance Calculator to track consumption. — Ed: Corrie S. Narisma
