The adjustment of P0.5335 per kilowatt-hour (kWh) brought the overall rate for a typical household to P14.3496 per kWh, up from P13.8161 per kWh in March.
For residential customers consuming 200 kWh, this translates to an increase of about P107 in their monthly electricity bill.
Rate increase
The bulk of the hike came from the generation charge, which rose by P0.5257 per kWh to P8.3864 per kWh.
Meralco said the increase was mainly driven by the weakening of the peso, which averaged P60.748 per dollar during the March supply month—more than P3 weaker than the previous period.
This marked the first time since June 2022 that the peso depreciated by around 5% in a single month.
Currency impact
The peso’s depreciation significantly affected power costs, particularly those tied to dollar-denominated contracts.
About 99 percent of the costs of the First Gas Sta. Rita and San Lorenzo plants and 44 percent of other power supply agreements (PSAs) are linked to the US dollar.
As a result, charges from First Gas increased by P1.2342 per kWh, while PSA costs rose by P0.1989 per kWh.
Meralco said efforts to shift some components of its PSAs to peso-denominated charges helped cushion the impact of currency fluctuations.
Supply pressures
Charges from the Wholesale Electricity Spot Market (WESM) surged by P2.3955 per kWh, reflecting tighter supply conditions in the Luzon grid.
Average demand rose by about 579 megawatts, driven by seasonal increases during the dry months when electricity use typically spikes.
For the period, PSAs accounted for 74 percent of Meralco’s energy supply, followed by First Gas at 20 percent, and WESM at 6 percent.
The company noted that the latest rate adjustments have yet to reflect potential increases in fuel prices stemming from the Middle East conflict.
Mixed charges
While generation costs increased, transmission charges declined by P0.0656 per kWh, due to lower ancillary service charges from the National Grid Corporation of the Philippines (NGCP).
Other charges, including taxes, posted a net increase of P0.0734 per kWh.
Meralco emphasized that generation and transmission charges are pass-through costs paid to suppliers and grid operators, while taxes and other fees are remitted to the government.
Consumers continue to benefit from an ongoing refund under the Actual Weighted Average Tariff (AWAT) mechanism, equivalent to P0.2024 per kWh for residential users.
Meanwhile, the company’s distribution charge has remained unchanged since a reduction implemented in August 2022.
Lifeline rates
Starting this April billing, low-income households will benefit from a new lifeline discount structure approved by the Energy Regulatory Commission (ERC).
Qualified customers consuming 50 kWh or less—including beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps)—will receive a 100-percent discount on electricity rates.
Meralco will also maintain existing discounts, granting 35 percent for consumption of 51 to 70 kWh and 20 percent for 71 to 100 kWh.
Efficiency push
With the dry season driving higher electricity demand, Meralco urged consumers to adopt energy-saving measures to manage their bills.
Electricity use typically rises between 20 percent and 33 percent during hotter months due to increased use of cooling appliances.
“We urge our customers to continue practicing energy efficiency and conservation,” said Joe R. Zaldarriaga, Meralco vice president and head of corporate communications.
Recommended practices include unplugging unused appliances, maximizing natural light, setting air conditioners to 25°C, and maintaining appliances for optimal performance. —Ed: Corrie S. Narisma
