Photo credit: Meralco

Meralco has shed light on the recent P2.15 per kilowatt-hour increase in electricity bills slated for July 2024, attributing it primarily to the normalization of rates after previous adjustments.

"This increase is mainly due to the normalization of rates for the current month of July," explained Joe Zaldarriaga, spokesperson for Meralco. "We saw a significant drop in charges from P11.41 in May to P9.45 in June, returning our rates to a more typical range. Specifically, the rate now stands at P11.60."

For consumers, this adjustment translates to varying additional costs based on consumption levels: a 200 kWh user will see an estimated increase of P430, while those consuming 300 kWh, 400 kWh, and 500 kWh can expect increases of P645, P860, and P1,075 respectively.

Zaldarriaga also clarified, "We had already forewarned last month that a substantial increase was expected come July due to the normalization of electricity rates and the deferred costs. This includes charges that were deferred from June and are now being reflected in the July billing, amounting to an estimated additional 77 centavos."

Looking ahead, Lawrence Fernandez, Meralco's head of utility economics, expressed optimism about a potential decrease in rates for August. "As we enter July with normalized rates, there is a possibility that rates could decrease in August," Fernandez noted. "We've observed a decrease in demand and an improvement in reserves in the spot market, contributing to a downward trend in prices."

Meralco's rate adjustments over the years have shown fluctuation, with recent months seeing significant variations due to market conditions and regulatory adjustments. Consumers are advised to monitor further announcements as the situation evolves.