Meralco hikes electricity rate by 2.29¢ per kWh for March
MANILA, Philippines — Consumers will end up paying more for their electricity bills in March—contrary to earlier projections of a decline—as power distributor Manila Electric Co. announced a 2.29-centavo per kilowatt-hour (kWh) increase in its rate for the month.
This brings the overall rate for a typical household to P11.9397 per kWh for March.
For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of less than P5 in their total electricity bills.
In a statement, Meralco said it implemented a slight rate hike due to an increase in transmission charges which offset the decline in generation charge.
Transmission, generation charges
The transmission charge for residential customers rose by P0.3976 per kWh due to higher ancillary service charges which more than tripled this month and now account for 52 percent of total transmission costs, Meralco said.
READ: Lower March power rates possible, says Meralco
This increase was tempered by a P0.3518 per kWh reduction in the generation charge, which was brought about by lower charges from power supply agreements, independent power producers and the power spot market.
“Our earlier projection of a lower generation charge would have resulted in lower overall rates. However, the steep upward adjustment in the transmission charge effectively wiped out the reduction in generation charges causing a slight uptick in overall rates,” Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga said.
READ: Meralco hikes February rates over higher fuel costs
In the same statement, Meralco said that as summer approaches, the public should continue practicing energy efficiency for better management of their consumption, which historically rises by 10 percent to 40 percent during this period.
