By means of Heroes Joy Talavera News reporter
HOUSEHOLDS SERVICED by Manila Electric Co. (Meralco) will face higher energy bills this month as rates rise by more than P2 per kilowatt hour (kWh) following a normalization of energy costs.
In a statement on Monday, Meralco said the total rate would increase by P2.1496 per kWh to P11.6012 per kWh in July from P9.4516 per kWh in June.
The power distributor attributed this significant increase to higher generation costs “as power costs normalized after ArtiFOfficially low rates last month.”
Households consuming 200 kWh will see their monthly bill increase by approximately €430.
Meanwhile, households consuming 300 kWh, 400 kWh and 500 kWh would see their monthly bills increase by P645, P860 and P1,075 respectively.
Joe R. Zaldarriaga, vice president and chief corporate communications officer of Meralco, said this during a brief speechFthat the latest adjustment is “virtually unchanged without last month’s steep cut.”
“Our electricity rates have returned to normal and that is why from P9.45 (per kWh) we are now back to the P11 range, to be precise, P11.60 (per kWh),” he said.
The driving force behind the increase this month was the generation surcharge, which rose by P2.0021 per kWh as Wholesale Electricity Spot Market (WESM) charges returned to normal levels and as Meralco started collecting deferred charges.
As a reminder, the electricity rate in June should have been higher than in May but was reduced by P1.9623 per kWh after the Energy Regulatory Commission (ERC) ordered the staggered collection of fees related to WESM purchases over a period of four months to ease the pressure. consequences of the high generation figures.
In addition to the ERC’s order, Meralco, together with Quezon Power (Philippines) Ltd., requested San Buenaventura Power Ltd. Co. (SBPL) and South Premiere Power Corp. (SPPC), also to spread the collection of approximately P500 million in cash. Generation costs May to September.
“We already had a disclaimer last month that we expect the increase to be significant in JulyFThere is no way that electricity prices will return to the previous level and the deferred charges will be charged,” Mr. Zaldarriaga said in mixed Filipino and English.
For this month, WESM costs increased by P6,637 per kWh “as costs not only normalized but also reorganized.Fhas chosen to reclaim part of the deferred WESM costs from the delivery month of May.”
However, Meralco said the increase was mitigated by the decline in spot market prices as average demand in the Luzon grid fell by about 900 megawatts.
Independent power producers (IPPs) costs increased by P0.4392 per kWh due to higher fuel costs and lower average plant deployment.
“Costs from power supply agreements (PSAs) also increased by P0.3530 per kWh as costs normalized to include the recovery of deferred costs for SBPL and SPPC’s 2024 EPSA (emergency power supply agreement),” Meralco said.
WESM, IPPs and PSAs accounted for 34%, 28% and 38% of the company’s total energy needs for July.
Meanwhile, transmission charges decreased by P0.1550 per kWh “due to the absence of settlement charges in the reserve market that affected last month’s additional service charge.”
In March, the ERC ordered the temporary suspension of billing and settlement of amounts on the reserve market following the significant price increase reported for the month compared to February.
Taxes and other charges increased by P0.3025 per kWh.
“This month’s tariffs include an adjustment to generation, transmission, system loss and lifeline subsidy costs, under the ERC rules for automatic cost adjustments and a true-up mechanism for pass-through tariffs,” Meralco said.
Distribution charges have remained unchanged at P0.0360 per kWh since August 2022.
Lawrence S. Fernandez, Meralco’s vice president and chief utility officer, said there is a possibility of lower rates in August as demand continues to decline.
“We saw in the spot market that because the rainy season has started, demand has also decreased and reserve levels in the spot market have improved, which also caused the price in the spot market to decrease. So hopefully this will continue, and this is againFlectured in the August generational complaint,” Mr. Fernandez said in mixed Filipino and English.
Data from the Independent Electricity Market Operator of the Philippines showed that as of June 25, the initial average WESM price for the entire country fell 25.2% to P6.15 per kWh.
Meanwhile, Mr Zaldarriaga said this month’s bills would be postponed as Meralco sought advice from the ERC on the implementation of the July interest rate adjustment.
“Rest assured that Meralco will adjust due dates to give our customers sufficient time to pay their bills,” he said in a statement.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partially owned by PLDT Inc.
Hastings Holdings, Inc., a part of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in Business through the Philippine Star Group, which it controls.