Meralco power rates slightly up in August

MANILA (UPDATE)  -- Electricity rates for Meralco will slightly go up in August. 

Power rates will be up by P0.03 per kilowatt-hour (kWh) due to an increase in transmission charges.

This means Meralco bills will climb by the following amounts. 

Consumption     Increase
 200kwh              P7
 300kwh              P10
 400kwh              P13
 500kwh              P16 

In a statement, Meralco explained that transmission charges went up by P0.1086/kWh because of higher charges of the grid operator for ancillary service, which covers reserves necessary to maintain grid reliability.

“For this month, ancillary service charges went up by more than 50 percent as charges for contingency and dispatchable reserves doubled,” Meralco said. 

The transmission charge increase more than offset the P0.0503/kWh reduction in the generation charge, Meralco said.

The National Grid Corporation of the Philippines' (NGCP's) higher transmission charge this month is separate from the pending 70 percent unpaid balance for ancillary services taken from the reserve market last march.

The Energy Regulatory Commission (ERC) has allowed the recovery of 30 percent 2 months ago, but the remaining 70 percent is up for recomputation and might be charged to consumers anytime.

That increase translates to around P0.40-P0.50/kwh.

Another potential increase that consumers need to know is the higher contract price of one of Meralco's suppliers using natural gas.

Since January, Meralco says, Lopez-owned San Lorenzo and Sta. Rita natural gas plants, have implemented a higher rate but this still needs approval from the regulator.

But Zaldarriaga says consumers may also get a respite by October after the staggered increase from the June spot market prices would have been finished.

Charges from independent power producers were also lower by P0.2974/kWh. Prices in the Wholesale Electricity Spot Market (WESM) also decreased because Luzon’s average peak demand decreased by 690 MW.

Charges from power supply agreements (PSAs), on the other hand, went up by P0.0421/kWh mainly because of higher fuel-related costs.

Taxes and other charges, meanwhile, registered a P0.0177/kWh net increase.