Consumers will see higher electricity bills this October as Manila Electric Co. (Meralco) raises its rate by P0.2331 per kilowatt-hour (kWh). 

The hike, spurred by a P0.1903 per kWh jump in generation charges, lifts the overall rate to P13.3182 per kWh, translating to about P47 more for households using 200 kWh.

Charges from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) went up by P0.3622 and P0.3567 per kWh, respectively, due to the peso’s depreciation against the United States dollar.

Merlaco noted that its suppliers are heavily exposed to foreign exchange fluctuations, with 99 percent of IPP and 48 percent of PSA costs affected.

However, the increase was partly offset by lower charges from the Wholesale Electricity Spot Market (WESM), which dropped by P2.0688 per kWh due to reduced power demand in Luzon.

Overall, IPPs, PSAs, and WESM supplied 21 percent, 74 percent, and 5 percent, respectively, of Meralco’s total power requirement.

Meralco added that transmission, taxes, and other charges also went up by P0.0428 per kWh.

It clarified that generation and transmission costs are passed on to power suppliers and the grid operator, while taxes and other government charges are remitted to state agencies.

“Meralco reiterates that its distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022,” the company said.

“Customers also continue to benefit from the ongoing implementation of the distribution-related true-up adjustment, equivalent to a reduction of P0.2024 per kWh for residential customers,” it added. 

With recent earthquakes affecting parts of the country, Meralco assured customers that it is taking steps to protect its facilities and ensure reliable service, including replacing wooden poles, relocating vulnerable structures, and installing smart devices to quickly address outages.