MVP orders Meralco fuel mix review to avert price shocks

The Manila Electric Co. (Meralco) has kicked off a full review of its fuel supply mix to shield consumers from sudden electricity rate spikes amid rising global energy costs triggered by unrest in the Middle East.

In a social media post on Wednesday, Meralco chairman Manuel V. Pangilinan said the company will closely monitor its liquefied natural gas inventory, as well as coal and diesel prices, all of which could drive power rates higher.

“We want to ensure adequate supply of power and manage price volatility as responsibly as possible. (I) gave made it clear to the team that we must help protect consumers as the cost of goods rises globally,” Pangilinan said.

Pangilinan also called on households and businesses to monitor their electricity use, noting that much of the country’s power fuel is imported.

“It would also help if we’re mindful of our electricity consumption as the war in the Middle East continues… we can all help to have enough power to get through the next few weeks if we conserve power,” he added.

At present, 60 percent of Meralco’s fuel requirement comes from natural gas, half of which is imported. 

Coal accounts for 20 to 25 percent, renewable energy 10 percent, and the remaining 5 to 10 percent is sourced from the Wholesale Electricity Spot Market.