November 2022 Rates Updates
The Manila Electric Company (Meralco) announced today a slight upward rate adjustment of P0.0844 per kWh, bringing the overall rate for a typical household to P9.9472 per kWh this November from the previous month’s P9.8628 per kWh.
For residential customers consuming 200 kWh, the adjustment is equivalent to a slight increase of around P17 in their total electricity bill.
Generation charge inched up in November
The modest increase in the overall rate was mainly due to the generation charge, which went up by P0.0725 to P6.9917 from P6.9192 per kWh.
Charges from Power Supply Agreements (PSAs) increased by P0.2711 per kWh largely due to the scheduled maintenance outage of First Natgas-San Gabriel plant from October 1 to 14. This was mitigated by lower charges from Independent Power Producers (IPPs) and the Wholesale Electricity Spot Market (WESM).
The P0.1520 per kWh decrease in IPP charges was primarily due to a stronger Peso, which affected 99% of IPP costs, and the reduced use of more expensive alternative fuel by First Gas-Sta. Rita. Malampaya natural gas prices remained stable following its quarterly repricing that reflected recent movement of international crude oil prices.
Meanwhile, WESM charges went down by P0.7959 per kWh with fewer instances of the secondary price cap imposition. During the October supply period, the secondary price cap was triggered 51.64% of the time, down from 55.16% the preceding month.
PSAs, IPPs and WESM accounted for 49%, 45%, and 6%, respectively, of Meralco’s total energy requirement for the period.
Transmission and other charges registered slight increase
Transmission, taxes, and other charges for residential customers also registered an upward net adjustment of P0.0119 per kWh.
Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-In Tariff Allowance (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. In addition, the four (4) ongoing distribution-related refunds, equivalent to a total of P1.8009 per kWh for residential customers, continue to temper customers’ monthly bills.
One of the four refunds, equivalent to P0.4669 per kWh for residential customers, is expected to be completed this November. The other three (3) are expected to be fully refunded by December 2022, January 2023, and May 2023 and the impact will subsequently be felt in succeeding billing periods.
Public urged to continue energy efficiency and electrical safety practices
Meralco advised its customers to continue practicing energy efficiency to better manage their electricity consumption. Through the Appliance Calculator on the Meralco Mobile App, customers are empowered to know how much their appliances and gadgets consume, thereby helping them stay in control of their monthly budget.
In addition, Meralco also encouraged its customers to observe electrical safety as it warned against power cable theft that could lead to power service interruptions, and worse, endanger the lives not only of the perpetrators but also of the public.
From 2020 to October 2022, Meralco recorded 457 cable theft incidents, majority of them were in Metro Manila. Of the total, 106 resulted in service interruptions and eight (8) led to injury or death.
Meralco urged the public to report theft incidents and exposed or damaged power cables through its 24/7 hotline 16211 or through its official social media pages on Facebook (www.facebook.com/meralco) and Twitter (@meralco).