November 2023 Rates Updates
The Manila Electric Company (Meralco) announced today an upward adjustment of P0.2347 per kWh in the November electricity rate, bringing the overall rate for a typical household to P12.0545 per kWh this month from P11.8198 per kWh in October.
For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around P47 in their total electricity bill.
Overall rate increase mainly due to higher transmission charge
Driving this month’s overall rate increase is the uptick in the transmission charge, which went up by P0.1211 per kWh for residential customers due to higher ancillary service charges.
The ancillary service charge of the National Grid Corporation of the Philippines (NGCP) for regulating reserves went up almost fourfold, from P23.17 per kW to P91.35 per kW. Cost of regulating reserves accounted for around 76.5% of total ancillary service charges. As of October this year, the Energy Regulatory Commission (ERC) has approved an additional 257.78 MW for regulating reserve under new ancillary service procurement agreements.
Generation charge and other charges also registered increases
The generation charge for November also went up by P0.0671 to P7.1938 per kWh from P7.1267 per kWh last month due to higher charges from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs).
WESM charges increased by P1.0933 per kWh due to tight supply conditions in the Luzon grid. Average capacity on outage increased by around 956 MW and persistent high spot market prices triggered the imposition of the secondary price cap 7.22% of the time.
Charges from IPPs also went up by P0.1093 per kWh mainly due to lower IPP dispatch and an increase in price of Malampaya natural gas following its quarterly repricing. Meanwhile, the P0.2980 per kWh decrease in Power Supply Agreement (PSA) charges mitigated the increase in the generation charge. Lower international coal prices, higher PSA dispatch, and higher excess energy deliveries, which are price-discounted, contributed to lower the PSA rate.
WESM, IPPs and PSAs accounted for 14.3%, 32.5%, and 53.2%, respectively, of Meralco’s total energy requirement for the October supply month.
Other charges also registered a P0.0465 per kWh total increase. The collection of the Feed-In Tariff Allowance (FIT-All), at the rate of P0.0364 per kWh, remains suspended as directed by the ERC.
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 urged to practice energy efficiency
To better manage their electricity consumption, Meralco reminded the public to continue practicing energy efficiency.
Some energy saving tips that customers can practice include unplugging appliances when not in use, regular cleaning of air conditioner filters to optimize its use and using LED bulbs for cost-saving lighting.
Meralco customers 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 X formerly Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at (02) 16211.
