{"id":19767,"date":"2024-07-16T03:04:54","date_gmt":"2024-07-16T03:04:54","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/meralco-rates-up-by-p2-per-kwh-in-july-as-power-costs-normalize\/"},"modified":"2024-07-16T03:04:54","modified_gmt":"2024-07-16T03:04:54","slug":"meralco-rates-up-by-p2-per-kwh-in-july-as-power-costs-normalize","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/meralco-rates-up-by-p2-per-kwh-in-july-as-power-costs-normalize\/","title":{"rendered":"Meralco rates up by P2 per kWh in July as power costs \u2018normalize\u2019"},"content":{"rendered":"
\n

By Sheldeen Joy Talavera, <\/b>Reporter<\/i><\/span><\/p>\n

HOUSEHOLDS SERVED by Manila Electric Co. (Meralco) will face higher power bills this month as rates go up by more than P2 per kilowatt-hour (kWh) due to a normalization in power costs.<\/p>\n

In a statement on Monday, Meralco said the overall rate would increase by P2.1496 per kWh to P11.6012 per kWh in July from P9.4516 per kWh in June.<\/p>\n

The power distributor attributed this hefty increase to the higher generation charge \u201cas power costs normalized following artif<\/span>icially low rates last month.\u201d<\/p>\n

Households consuming 200 kWh will see their monthly bill go up by around P430.<\/p>\n

Meanwhile, households consuming 300 kWh, 400 kWh, and 500 kWh would see an increase in their monthly bills by P645, P860, and P1,075, respectively.<\/p>\n

Joe R. Zaldarriaga, Meralco\u2019s vice-president and head of corporate communications, said at a brie<\/span>f<\/span>ing that the latest adjustment is \u201calmost unchanged without the steep reduction last month.\u201d<\/span><\/p>\n

\u201cOur power rates returned to normal that is why from P9.45 (per kWh), we are now back to the P11 range, to be exact, P11.60 (per kWh),\u201d he said.<\/span><\/p>\n

Driving this month\u2019s increase was the generation charge, which climbed by P2.0021 per kWh as the charges from the Wholesale Electricity Spot Market (WESM) returned to the normal level and as Meralco started the collection of deferred costs.<\/p>\n

To recall, the June electricity rate was supposed to be higher than May but was reduced by P1.9623 per kWh after the Energy Regulatory Commission (ERC) ordered the staggered collection of charges related to WESM purchases over a four-month period to soften the impact of the high generation rates.<\/p>\n

Aside from the ERC\u2019s order, Meralco also requested, along with Quezon Power (Philippines) Ltd., San Buenaventura Power Ltd. Co. (SBPL), and South Premiere Power Corp. (SPPC), to stagger the collection of around P500 million in May generation costs until September.<\/span><\/p>\n

\u201cWe had a disclaimer as early as last month that in the month of July, anticipate that the increase will be signif<\/span>icant as electricity prices will return to its previous level plus the deferred cost will be charged,\u201d Mr. Zaldarriaga said in mixed Filipino and English.<\/p>\n

For this month, WESM charges went up by P6.637 per kWh \u201cas charges not only normalized but also re<\/span>f<\/span>lected the recovery of a portion of deferred WESM costs from the May supply month.\u201d<\/span><\/p>\n

Meralco said, however, the increase was mitigated by the reduction in spot market prices as average demand in the Luzon grid went down by about 900 megawatts.<\/p>\n

Charges from independent power producers (IPPs) rose by P0.4392 per kWh due to higher fuel costs and lower average plant dispatch. <\/span><\/p>\n

\u201cCharges from power supply agreements (PSAs) also went up by P0.3530 per kWh, as charges normalized and included the recovery of deferred costs for SBPL and SPPC\u2019s 2024 EPSA (emergency power supply agreement),\u201d Meralco said.<\/p>\n

WESM, IPPs, and PSAs accounted for 34%, 28%, and 38% of the company\u2019s total energy requirement for July.<\/p>\n

Meanwhile, the transmission charge dropped by P0.1550 per kWh \u201cdue to the absence of reserve market settlement charges that affected last month\u2019s ancillary service charges.\u201d <\/span><\/p>\n

In March, the ERC ordered the temporary suspension of the billing and settlement of amounts in the reserve market following the significant price increase reported for the month compared with February.<\/p>\n

Taxes and other charges went up by P0.3025 per kWh.<\/p>\n

\u201cThis month\u2019s rates included an adjustment in generation, transmission, system loss, and lifeline subsidy charges, under the ERC rules governing automatic cost adjustments and true-up mechanism for pass-through charges,\u201d Meralco said.<\/span><\/p>\n

Distribution charge has remained unchanged at P0.0360 per kWh since August 2022.<\/p>\n

Lawrence S. Fernandez, Meralco\u2019s vice-president and head of utility economics, said that there is a possibility of lower rates in August as demand further declines.<\/p>\n

\u201cWe saw in the spot market that because the rainy season has started, demand also went down and the reserve levels in the spot market have improved, so the price in the spot market also went down. So hopefully, this will continue, and this is re<\/span>f<\/span>lected in the August generation charge,\u201d Mr. Fernandez said in mixed Filipino and English.<\/span><\/p>\n

Data from the Independent Electricity Market Operator of the Philippines showed that as of June 25, the initial average WESM price for the entire country went down by 25.2% to P6.15 per kWh.<\/p>\n

Meanwhile, Mr. Zaldarriaga said this month\u2019s bills would be delayed as Meralco sought the guidance from the ERC on the implementation of July rate adjustment.<\/p>\n

\u201cRest assured that Meralco will adjust the due dates to give our customers enough time to settle their bills,\u201d he said in a statement.<\/p>\n

Meralco\u2019s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.<\/p>\n

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld<\/i> through the Philippine Star Group, which it controls.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

HOUSEHOLDS SERVED by Manila Electric Co. (Meralco) will face higher power bills this month as rates go up by more than P2 per kilowatt-hour (kWh) due to a normalization in power costs.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[16309,15806,14644,15273,16945,5845,2565,4758,8579],"class_list":["post-19767","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-normalize","tag-costs","tag-bworldonline","tag-july","tag-kwh","tag-meralco","tag-per","tag-power","tag-rates"],"yoast_head":"\nMeralco rates up by P2 per kWh in July as power costs \u2018normalize\u2019 - Energy Buzz<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energybuzz.ph\/meralco-rates-up-by-p2-per-kwh-in-july-as-power-costs-normalize\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Meralco rates up by P2 per kWh in July as power costs \u2018normalize\u2019 - Energy Buzz\" \/>\n<meta property=\"og:description\" content=\"HOUSEHOLDS SERVED by Manila Electric Co. 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