Customers of Manila Electric Co. (Meralco) should prepare for a 3.27-centavo increase in their power bills this month, bringing the overall rate for a typical household to ₱11.63 per kilowatt-hour (kWh), up from ₱11.60/kWh last month.

The August rate adjustment results in an increase of about ₱7 for residential users consuming 200 kWh.

Meralco, in its report to the press on Monday, attributed the increase to a 10.86-centavo/kWh rise in the transmission charge for residential customers.

The power distributor noted that this increase “more than offset” the 5.03-centavo/kWh reduction in the generation charge.

Independent Power Producers (IPPs) lowered their charges by 29.74 centavos/kWh due to higher dispatch and peso appreciation, which affected around 97 percent of their dollar-denominated costs.

Meanwhile, Wholesale Electricity Spot Market (WESM) prices also declined as Luzon’s average peak demand decreased by 690 megawatts (MW).

Charges from Power Supply Agreements (PSAs) rose by 4.21 centavos/kWh, primarily due to higher fuel-related costs.

IPPs, WESM, and PSAs accounted for 33 percent, 27 percent, and 40 percent of Meralco’s total energy requirement for the period, respectively.

The Universal Charge for Missionary Electrification decreased by 4.33 centavos/kWh following the completion of the ERC-approved true-up rate recovery. Taxes and other charges saw a 1.77-centavo/kWh net increase.

According to Meralco, its distribution charge has remained unchanged since the 3.60-centavo/kWh reduction for a typical residential customer in August 2022.