June 2023 Rates Updates
The Manila Electric Company (Meralco) announced today an upward adjustment of P0.4183 per kWh in the electricity rate this June, bringing the overall rate for a typical household to P11.9112 per kWh from May's P11.4929 per kWh.
For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around P84 in their total electricity bill.
Completion of distribution-related refund triggered rate increase
As anticipated, the driver of this month's overall rate increase was the completion of the last distribution-related refund in May equivalent to P0.8656 per kWh for residential customers, the impact of which will be felt in the June bills.
To recall, from March 2021 until May 2023, Meralco implemented four (4) Distribution Rate True-Up (DRTU) adjustments totaling P48.3 billion which translated to about P1.8009 per kWh refund for residential customers.
“These refunds benefitted Meralco's customers over the past two years as these helped temper increases in electricity bills at a time of financial distress and uncertainty for many,” Meralco Head of Regulatory Management Office Atty. Jose Ronald V. Valles said.
Lower generation charge mitigated rate increase
Tempering this month's rate increase was the generation charge, which went down by P0.4195 per kWh from P7.6697 per kWh in May to P7.2502 per kWh this month due to lower costs from Meralco's Power Supply Agreements (PSAs) and Independent Power Producers (IPPs). This month's generation charge no longer included recovery of deferred generation cost for the March bills.
Charges from PSAs and IPPs decreased by P0.5871 and P0.5854 per kWh, respectively, mainly due to improved average plant dispatch and lower coal prices.
These mitigated the P2.0187 per kWh increase in Wholesale Electricity Spot Market (WESM) charges due to tight supply conditions in Luzon. Peak demand in May reached 12,431 MW, the highest so far on record. The grid was also placed on Yellow and Red Alerts last May 8. Persistently high spot prices triggered the imposition of the secondary price cap 28.28% of the time, compared to 22.16% in April.
The share of PSAs and IPPs to Meralco's energy requirements during the period went up to 50% and 38%, respectively. Meanwhile, WESM energy share was lower at 12%.
Transmission and other charges registered net reduction
This month's transmission and other charges registered a net decrease of P0.0278 per kWh. Collection of the Feed-In Tariff Allowance (FIT-All) remains suspended until the August billing month in accordance with the ERC resolution extending the collection suspension for another six (6) months starting March 2023.
Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively; while taxes, universal charges, and FIT-All are all remitted to the government.
Meralco's distribution charge, meanwhile, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022.
Public reminded to practice electrical safety as rainy season begins
Following the onset of the rainy season, Meralco reminds the public to practice electrical safety given the increased likelihood of flooding. Among the practical safety tips that customers can practice are:
- Switching off the main electrical power switch or circuit breaker in case of flooding
- Ensuring that electrical wires and accessories are dry all the time
- Keeping hands dry when touching electrical appliances and facilities
Meralco also encourages the public to continue practicing energy efficiency and conservation to better manage electricity consumption. Consumers can also have better control of their monthly electricity bills with the help of the Meralco Mobile App Appliance Calculator that provides information on the energy consumption of appliances and gadgets.
Customers can report power outages and other concerns to Meralco through its official social media accounts on Facebook (www.facebook.com/meralco) and Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211 and 8631-1111.