Customers of the Manila Electric Co. (Meralco) should brace for a 3.27 centavos increase in their power bills this month, with the overall rate for a typical household hitting P11.63 per kilowatt-hour (kWh) from the previous month’s P11.60/kWh.
The August rate adjustment translates to an increase of around P7 for residential users consuming 200 kWh.
Meralco, in its report to the press on Monday, attributed the upward rate movement to the 10.86 centavos/kWh increase in the transmission charge for residential customers.
The power distributor said the increase “more than offset” the 5.03 centavos/kWh reduction in the generation charge.
IPP charges down
Notably, Independent Power Producers (IPPs) reduced their charges by 29.74 centavos/kWh due to higher dispatch, and peso appreciation that affected around 97 percent of their dollar-denominated costs.
Meanwhile, Wholesale Electricity Spot Market (WESM) prices also saw a decline as Luzon’s average peak demand went down by 690 megawatts.
Charges from Power Supply Agreements, on the other hand, went up by 4.21 centavos/kWh mainly due to higher fuel-related costs.