Manila Electric Co. (Meralco) power rates are expected to increase this month due to higher pass-through charges. A company official noted potential rises in generation and transmission charges, driven by factors like spot market prices and the weakening peso.
Meralco has indicated that electricity rates for February may increase due to various pass-through charges. According to company spokesman Joe Zaldarriaga, final billings from suppliers have not yet been received, but initial indications suggest upward pressure on these charges.
Generation charges, which comprise over 50 percent of consumer bills, could rise owing to higher spot market prices in Luzon. The Independent Electricity Market Operator of the Philippines (IEMOP) reported that prices increased amid tighter supply margins resulting from forced outages at coal and natural gas units. Additionally, the weakening peso is contributing to higher generation costs, as most supplier fees are in dollars.
Transmission charges may also increase due to elevated market prices for regulating and contingency reserves. These charges, accounting for about 10 percent of the total bill, cover the cost of delivering electricity from power plants to distribution systems.
Another contributing factor is the new adjustment to the Universal Charge for Missionary Electrification, approved by the Energy Regulatory Commission. This equates to an additional P0.08 per kilowatt-hour for all on-grid consumers, aiding electrification in remote areas.
"As these are still initial, the overall rate movement could still change," Zaldarriaga noted. Meralco serves more than eight million customers in Metro Manila and surrounding provinces, with the final February rate announcement expected today.
