March 2024 Rates Updates
MANILA, PHILIPPINES, 08 MARCH 2024 – The Manila Electric Company (Meralco) announced today a slight upward adjustment of P0.0229 per kWh in the March electricity rate. This brings the overall rate for a typical household to P11.9397 per kWh this month from P11.9168 per kWh in February.
For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of less than P5 in their total electricity bill.
Higher transmission charge offsets decrease in generation charge
Driving this month’s overall rate increase is the P0.3976 per kWh increase in the transmission charge for residential customers due to higher ancillary service charges, which more than tripled this month and now account for around 52% of total transmission costs.
This increase was tempered by a P0.3518 per kWh reduction in the generation charge.
Charges from Power Supply Agreements (PSAs) went down by P0.3045 per kWh mainly due to lower energy payments for the South Premier Power Corp. (SPPC) emergency PSAs and the resumption of operations of the San Buenaventura Power Ltd. Co. (SBPL) power plant after undergoing scheduled maintenance.
Charges from Independent Power Producers (IPPs) similarly decreased by P0.1443 per kWh, already reflecting deductions of incremental Malampaya gas costs for FGPC–Sta. Rita under its new Gas Sale and Purchase Agreement (GSPA), as directed by the Energy Regulatory Commission. These were equivalent to generation charge reductions of P0.0447 per kWh and P0.0866 per kWh for the January and February 2024 supply months, respectively.
Charges from the Wholesale Electricity Spot Market (WESM) went down by P0.1131 per kWh as the supply situation improved. Average capacity on outage in the Luzon grid decreased by more than 300MW.
PSAs, IPPs, and WESM accounted for 51%, 27% and 22%, respectively, of Meralco’s total energy requirement for this period.
Other charges
Other charges also registered a net decrease of P0.0229 per kWh. 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 the Feed-In Tariff Allowance or FIT-All are all remitted to the government.
Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022.
"Our earlier projection of a lower generation charge would have resulted to lower overall rates. However, the steep upward adjustment in the transmission charge effectively wiped out the reduction in generation charges causing a slight uptick in overall rates,” said Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga.
Meralco reminds customers to embrace energy efficiency, practice electrical safety
As summer approaches, Meralco reminded the general public to continue practicing energy efficiency for better management of their consumption, which historically rises by 10% to 40% during this period.
To better manage their electricity use, Meralco encourages its customers to use its Appliance Calculator (AppCal) available in the Meralco Mobile App. The AppCal provides information on the power consumption of various gadgets and major household appliances.
The company also reiterated its solidarity with government in raising awareness about the dangers of fire this Fire Prevention Month. The company urged the public to continue practicing electrical safety measures, which includes avoiding “octopus connections” or plugging in extension cords into a single power outlet as this could overheat and result in fire and other accidents; ensuring that electrical facilities are in proper condition by having these routinely checked by a licensed electrician; and avoiding placing and running electrical cords under rugs or carpets as constantly walking on these could damage the insulation of the wires.
In case of emergency, customers can report power outages and other concerns through Meralco's official social media accounts on Facebook (www.facebook.com/meralco) and X formerly Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at (02) 16211.
