By Sheldeen Joy Talavera, Reporter
RESIDENTIAL customers of Manila Electric Co. (Meralco) will pay more for electricity this October as higher generation charges push up the power distributor’s overall rate.
The overall electricity rate increased by P0.3191 per kilowatt-hour (kWh) to P15.0615 from P14.7424 per kWh in September, Meralco said in a statement on Tuesday.
For households consuming 200 kWh, the adjustment translates to an increase of about P64 in their monthly electricity bills. Those consuming 300 kWh, 400 kWh, and 500 kWh will pay approximately P96, P128, and P160 more, respectively.
Meralco Spokesperson Joe R. Zaldarriaga said generation charges increased by P0.4973 per kWh, citing higher costs of purchased electricity.
He said higher natural gas prices amid the prolonged conflict in the Middle East and the peso’s depreciation against the US dollar contributed to the increase, particularly for power supply agreements denominated in dollars.
Transmission charges, meanwhile, declined by P0.0063 per kWh.
Meralco said ancillary service charges collected by the National Grid Corp. of the Philippines (NGCP) decreased by P0.1321 per kWh due to lower charges from the reserve market.
Ancillary services refer to power reserves used to maintain the stability of the electricity grid.
Taxes and other charges posted a net decrease of P0.0398 per kWh.
“Pass-through charges for generation, and transmission and ancillary service are paid by Meralco to the power suppliers and the NGCP, respectively; while taxes, universal charges, and other public policy charges are all remitted to the government and the relevant agencies,” Meralco said.
Mr. Zaldarriaga also said the recently approved adjustments to Meralco’s distribution charges and the corresponding customer refund would be implemented in November.
The Energy Regulatory Commission ordered Meralco to refund P2.64 billion in excess distribution charge collections arising from the delayed rate reset.
Customers will receive a refund equivalent to P0.1733 per kWh over six months.
The regulator also approved P342 billion in total revenue for Meralco over four years, allowing the utility to increase its distribution charge to P1.48 per kWh from P1.35 per kWh.
“Once we receive the order, we will review its contents and implement its provisions,” Mr. Zaldarriaga said.
EL NIÑO PREPARATIONS
Meralco said it has secured sufficient electricity supply to meet its requirements amid concerns over the potential impact of El Niño on the power sector.
The company said it continues to conduct regular maintenance and upgrade its distribution facilities to maintain operations.
“With higher temperatures expected during the El Niño, we anticipate increase in electricity demand. We therefore call on our customers to be mindful of their consumption and to practice energy efficiency, which will also help in managing their electricity bills,” Mr. Zaldarriaga said.
El Niño is a climate phenomenon associated with warmer-than-normal sea surface temperatures in the central and eastern tropical Pacific. In the Philippines, it can increase the likelihood of below-normal rainfall and higher temperatures in affected areas.
The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) announced the onset of El Niño in June.
In an advisory last month, PAGASA said a strong El Niño was active in the tropical Pacific and could intensify into a “very strong El Niño” by December. The agency said the phenomenon could persist through the first half of 2027.
Meralco said it is also encouraging more commercial and industrial customers to participate in the government’s Interruptible Load Program, which allows participating establishments to temporarily reduce their demand from the grid during periods of tight electricity supply.
Meralco serves more than 8.3 million customers across Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.
Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.