The Manila Electric Co. (Meralco) raised electricity rates for July by P0.3428 per kilowatt-hour (kWh), with higher generation costs accounting for more than half of the increase following the scheduled shutdown of the Malampaya gas field, higher fuel costs, and firmer Wholesale Electricity Spot Market (WESM) prices.
In a statement on Friday, Meralco said the overall rate for a typical residential customer rose to P14.8261 per kWh from P14.4833 per kWh in June.
The adjustment translates to an additional P69 in the monthly bill of a household consuming 200 kWh.
The generation charge, a pass-through component of consumers’ electricity bills, increased by P0.1800 per kWh to P9.2504 from P9.0704 in June.
Charges from the First Gas-Prime Energy generation portfolio rose by P0.3613 per kWh to P10.6489 after the one-month scheduled maintenance shutdown of the Malampaya natural gas facility that began on June 15 prompted the Sta. Rita and San Lorenzo gas-fired power plants to temporarily use imported liquefied natural gas (LNG), which carries higher fuel costs.
Charges from power supply agreements (PSAs) executed after the implementation of the Electric Power Industry Reform Act of 2001 (EPIRA) increased by P0.2678 per kWh to P8.8694. Meralco attributed the increase to higher fuel prices linked to the continuing conflict in the Middle East.
Meanwhile, the average price of electricity sourced from the WESM rose to P8.0337 per kWh after Luzon’s peak demand reached a record 14,534 megawatts (MW) on May 28.
Meralco said tighter supply-demand conditions resulted in the secondary price cap being imposed during 11.1% of trading intervals.
During the billing period, PSAs supplied 72% of Meralco’s energy requirements, while the First Gas-Prime Energy portfolio accounted for 22% and the WESM supplied the remaining 6%.
Taxes increased by P0.0960 per kWh, primarily because imported LNG is subject to the 12% value-added tax (VAT), unlike indigenous natural gas from the Malampaya field, which remains VAT-exempt, according to Meralco.
Transmission and other charges likewise increased by P0.0668 per kWh.
Meanwhile, the Energy Regulatory Commission (ERC) extended until August the suspension of the collection of the P0.0371-per-kWh Green Energy Auction Allowance (GEA-All).
Meralco said its distribution charge has remained unchanged since a P0.0360-per-kWh reduction took effect in August 2022.
Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin
