In a statement, Meralco said customers will experience a P0.1543 per kilowatt-hour (kWh) hike, pushing the overall rate to P11.7882 per kWh from August’s P11.6339 per kWh.
For households consuming 200 kWh, this translates to about P31 rise in their electricity bill for September, the country’s largest power retailer said.
The increase is primarily due to a P0.2913 per kWh hike in the transmission charge, attributed to higher ancillary service costs following the resumption of the reserve market in August.
These charges have doubled from previous levels under National Grid Corporation of the Philippines' Ancillary Service Procurement Agreements (ASPAs). The share of ancillary charges now comprises over 50 percent of the transmission rate.
While generation charges declined by P0.1547 per kWh, this reduction was overshadowed by the transmission cost surge.
Meralco also noted that while power supply agreements, independent power producers, and the Wholesale Electricity Spot Market all contributed to lower generation costs, an increase in generation charges is expected in October.
This rise will be driven by adjusted rates from the Sta. Rita and San Lorenzo plants of Lopez family-owned First Gas, as the new Malampaya gas pricing is implemented.
