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Advocates Philippines
Meralco Rates Go Up This December - Here's Why Your Electricity Bill Might Be Higher
Photo credit: PNA
Heads up, Meralco customers. Your electricity bill for December is set to see a slight increase. Manila Electric Company (Meralco) just announced a Php 0.1048 per kilowatt hour (kWh) hike in its overall electricity rate, bringing the total to Php 11.9617 per kWh compared to November's Php 11.8569. For households consuming 200 kWh, that’s roughly an additional Php 21 on your bill this month.
So, what’s driving the increase? According to Meralco, the main culprit is the higher generation charge—the cost of power supplied to Meralco.
What Happened to Generation Costs?
The generation charge surged by Php 0.1839 per kWh this month, and Meralco says it’s due to a mix of factors.
Wholesale Electricity Spot Market (WESM): Costs here spiked by Php 0.2531 per kWh, thanks to a tighter power supply in the Luzon grid. Average capacity outages increased by about 396 MW, squeezing the available supply.
Power Supply Agreements (PSAs): Charges from PSAs went up by Php 0.1050 per kWh, mainly due to the depreciation of the Peso, which impacted over half of PSA-related costs. Lower PSA dispatch levels also added to the increase.
Luckily, there was a bit of relief elsewhere. Charges from Independent Power Producers (IPPs) dropped by Php 0.0410 per kWh. This was helped by the return of the First Gas Sta. Rita Modules 20 and 30 to normal operations after their scheduled maintenance, boosting power dispatch and offsetting some of the Peso-related cost increases.
Transmission and Other Charges
While generation costs went up, the transmission charge actually dipped by Php 0.0940 per kWh due to lower ancillary service costs in the Reserve Market. However, taxes and other charges slightly ticked up by Php 0.0149 per kWh.
What Meralco Says
Joe R. Zaldarriaga, Meralco’s Vice President and Head of Corporate Communications, explained the increase: “This month’s increase was largely due to higher generation charge, which goes to our power suppliers.”
So, while this adjustment may seem small at first glance, it’s a reminder to keep an eye on your power usage this holiday season. After all, every kilowatt counts when it comes to managing your electricity bill.
So, what’s driving the increase? According to Meralco, the main culprit is the higher generation charge—the cost of power supplied to Meralco.
What Happened to Generation Costs?
The generation charge surged by Php 0.1839 per kWh this month, and Meralco says it’s due to a mix of factors.
Wholesale Electricity Spot Market (WESM): Costs here spiked by Php 0.2531 per kWh, thanks to a tighter power supply in the Luzon grid. Average capacity outages increased by about 396 MW, squeezing the available supply.
Power Supply Agreements (PSAs): Charges from PSAs went up by Php 0.1050 per kWh, mainly due to the depreciation of the Peso, which impacted over half of PSA-related costs. Lower PSA dispatch levels also added to the increase.
Luckily, there was a bit of relief elsewhere. Charges from Independent Power Producers (IPPs) dropped by Php 0.0410 per kWh. This was helped by the return of the First Gas Sta. Rita Modules 20 and 30 to normal operations after their scheduled maintenance, boosting power dispatch and offsetting some of the Peso-related cost increases.
Transmission and Other Charges
While generation costs went up, the transmission charge actually dipped by Php 0.0940 per kWh due to lower ancillary service costs in the Reserve Market. However, taxes and other charges slightly ticked up by Php 0.0149 per kWh.
What Meralco Says
Joe R. Zaldarriaga, Meralco’s Vice President and Head of Corporate Communications, explained the increase: “This month’s increase was largely due to higher generation charge, which goes to our power suppliers.”
So, while this adjustment may seem small at first glance, it’s a reminder to keep an eye on your power usage this holiday season. After all, every kilowatt counts when it comes to managing your electricity bill.
Dec 10, 2024
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