November 2024 Rates Updates
The Manila Electric Company (Meralco) announced today an upward adjustment of P0.4274 per kWh in the electricity rate this November, bringing the overall rate for a typical household to P11.8569 per kWh from the previous month’s P11.4295 per kWh.
For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around P85 in their total electricity bill this month.
Higher generation charge drives overall rate increase
Driving this month’s overall rate increase is the P0.2884 per kWh increase in the generation charge.
Charges from the Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) went up by P0.9392 and P0.4295 per kWh respectively, largely due to the depreciation of the Peso. The Peso weakened by P2 vis-à-vis the US Dollar, affecting 98% of IPP costs and 49% of PSA costs that were dollar denominated. In addition, payments for liquefied natural gas (LNG) terminal fees of First Gas Sta. Rita and San Lorenzo plants contributed to the higher IPP charges.
Meanwhile, charges from the Wholesale Electricity Spot Market (WESM) inched up by P0.0150 per kWh. Average demand in the Luzon grid was higher by about 198 MW while average capacity on outage also increased by 179 MW.
IPPs, PSAs, and WESM accounted for 24%, 47%, and 29%, respectively, of Meralco’s total energy requirement for the period.
Higher transmission and other charges
Also contributing to the overall increase in the electricity rate this month was the P0.0724 per kWh increase in the transmission charge due to higher ancillary service charges from the WESM Reserve Market.
Taxes and other charges similarly increased by P0.0666 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 in August 2022.
Meralco provides relief to storm-stricken customers; reminds public to observe safety practices ahead of the holiday season
In compliance with the recent directive of President Ferdinand Marcos Jr. and the Energy Regulatory Commission (ERC), Meralco provided relief to customers severely affected by the recent onslaught of Severe Tropical Storm Kristine.
Meralco customers in areas placed under a state of calamity with a monthly consumption of less than 200 kWh per month are spared from disconnection until December 2024. They can also avail of installment payment arrangements for six (6) months for their electricity bills from October to December 2024.
“Meralco has always been considerate of its customers especially during challenging times. We join the government in efforts to help those severely affected by the storm to recover as soon as possible. Qualified customers for the staggered payment arrangement can go to Meralco Business Centers and our personnel will assist them accordingly,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said.
Meanwhile, as the holiday season approaches, Meralco reiterated its reminder to the public to remain vigilant against illegal electricity service connections which can cause accidents and power interruptions. Under Republic Act No. 7832 or the Anti Electricity Pilferage Act, illegal service connections are crimes punishable with possible imprisonment and fines starting from P10,000.
Meralco also reminded the public to observe the following electrical safety practices:
- Buy Christmas lights with quality control markings and make sure to use the appropriate type for indoor and outdoor use.
- For those who are re-using Christmas lights, check for cracked, frayed or damaged lights since these are potential fire hazards.
- When installing decorations outdoors, inspect for loose connections first and possible damages especially near power lines.
- Avoid ‘octopus’ connections or overloading and avoid using all appliances at once.
- When leaving the house, make sure to unplug Christmas lights and all appliances.
- Do not use party items like poppers and balloons near power lines as these could cause power outage and accidents.
Customers can report their 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 16211.