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These adjustments have yet to reflect expected fuel price increases due to the Middle East conflict
(This is a press release from Meralco.)
MANILA, Philippines –The Manila Electric Company (Meralco) announced on Friday, April 10 an upward adjustment of P0.5335 per kilowatt-hour (kWh) in electricity rates this April, bringing the overall rate for a typical household to P14.3496 per kWh this month from P13.8161 per kWh in March.
For residential customers with a typical consumption of 200 kWh, this adjustment translates to an increase of around P107 in their total electricity bill.
Peso depreciation drives generation charge increase
The generation charge went up by P0.5257 per kWh to P8.3864 from P7.8607 per kWh, largely due to the weakening of peso against the US dollar.
For the March supply month, the exchange rate increased by more than P3 to P60.748. The last time the peso depreciated by about 5% in a month was in June 2022. The peso’s depreciation affected around 99% of costs of First Gas Sta. Rita and San Lorenzo gas plants (First Gas) and 44% of the rest of Meralco’s Power Supply Agreements (PSAs) that were dollar-denominated.
As a result, charges from First Gas and PSAs went up by P1.2342 and P0.1989 per kWh, respectively. Meralco’s initiative to negotiate for and require peso-denominated capital recovery fees for its post-EPIRA power suppliers under the PSAs has helped mitigate the impact of peso depreciation on its customers.
Charges from the Wholesale Electricity Spot Market (WESM) also increased by P2.3955 per kWh due to tight supply conditions in the Luzon grid mainly driven by the seasonal increase in demand of about 579 MW on average.
First Gas, PSAs, and WESM accounted for 20%, 74%, and 6%, respectively, of Meralco’s total energy requirement for the period.
To clarify, these adjustments have yet to reflect expected fuel price increases due to the Middle East conflict.
Transmission and other charges
The transmission charge for residential customers, meanwhile, went down by P0.0656 per kWh due to lower ancillary service charges incurred by the National Grid Corporation of the Philippines (NGCP) from the Reserve Market.
Other charges, including taxes, registered a net increase of P0.0734 per kWh.
Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively; while taxes, universal charges, and renewable energy subsidies are all remitted to the government.
Meanwhile, Meralco consumers continue to benefit from the on-going Actual Weighted Average Tariff (AWAT) adjustments refund amounting to P0.2024 per kWh for residential customers. Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer in August 2022.
New lifeline discount structure for low-income consumers to start this April billing
In accordance with the Energy Regulatory Commission’s (ERC) new uniform national lifeline consumption threshold for marginalized and low-income households, such as members of the Pantawid Pamilyang Pilipino Program (4Ps), qualified customers with consumption of 50 kWh or less will get 100% discount on their electricity rates starting this April.
Meralco will likewise continue to implement its existing lifeline discounts beyond the national threshold, granting a 35% discount for qualified customers consuming 51 to 70 kWh and a 20% discount for those consuming 71 to 100 kWh.
Energy efficiency reminders
Amid the ongoing dry season and persisting volatility in global markets due to the Middle East conflict, Meralco encourages its customers to practice energy efficiency to better manage electricity consumption.
Electricity demand historically spikes during the dry season as households increase their use of cooling appliances such as air conditioners. During last year’s dry season, consumption increased between 20% and 33%.
“We urge our customers to continue practicing energy efficiency and conservation. Beyond helping manage consumption and electricity bills, these practices can contribute to mitigating the impact of external factors on electricity costs,” Meralco vice president and head of corporate communications Joe Zaldarriaga said.
Some energy efficiency tips that customers can observe include unplugging appliances when not in use; utilizing natural light when and where possible; and setting air conditioners to 25°C with regular maintenance to ensure efficient operation. Meralco also advises avoiding overloading refrigerators to allow proper air circulation inside, and ironing clothes in large batches.
Customers can report their electricity service concerns through the My Meralco app or through Meralco’s official social media accounts on Facebook (www.facebook.com/meralco) and X formerly Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211.# – Rappler.com
