Electricity hike strains consumer

While many are still grappling with a sharp spike in fuel prices, electricity users served by Manila Electric Company (Meralco) will also see higher power bills this month after the utility raised rates.

Meralco said Tuesday the overall rate increased by P0.6427 per kilowatt-hours (kWh) to P13.8161 per kWh this month from P13.1734 per kWh in February. It will add about P129 to the monthly bill of a typical household consuming 200 kWh.

Higher transmission and generation charges pushed up the overall rate.

Transmission charges rose

Transmission charges rose by P0.2880 per kWh, largely due to a 70 percent increase in ancillary service charges incurred by the transmission operator from the Reserve Market.

Costs from the Reserve Market accounted for nearly half of the total transmission charge this billing month. Generation charges also went up by P0.2209 per kWh to P7.8607 per kWh.

These increases partly offset a P1.0952 per kWh reduction in charges from the Wholesale Electricity Spot Market, as supply conditions in the Luzon grid improved.

Generation charge

The generation charge also reflected a P0.2817 per kWh contract price adjustment for supply from ACEN Corp., Panay Energy Development Corp., South Premiere Power Corp. and Sual Power Inc. approved by the Energy Regulatory Commission.

The adjustment is equivalent to about P789 million in generatioin costs for this billing month.

The impact was more than offset by the completion of the recovery of a previous contract price adjustment for South Premiere Power Corp. and Sual Power Inc., totaling P858 million or about P0.30 per kWh.

Other charges, including taxes, registered a net increase of P0.1338 per kWh.

New uniform national lifeline subsidy rate

According to Meralco, the March rate also reflected the implementation of the new uniform national lifeline subsidy rate of P0.01 per kWh following a directive from the Energy Regulatory Commission.

Meralco said generation and transmission charges are pass-through costs paid to power suppliers and the grid operator, while taxes, universal charges and renewable energy subsidies are remitted to the government.