MANILA — Power consumers served by the Manila Electric Company (Meralco) will face higher electricity bills this month following an increase driven by rising generation expenses, liquefied natural gas costs, and spot market prices.
During a press briefing on Tuesday, October 13, Meralco reported that its overall electricity rate climbed by ₱0.32 per kilowatt-hour (kWh), bringing the new rate to ₱15.0615/kWh. For a standard household consuming 200 kWh monthly, this adjustment translates to an extra ₱64 on their bill.
Meralco Vice President and Spokesperson Joe Zaldarriaga explained that charges from First Gas/Prime CoreGen surged by ₱3.2206/kWh due to increased fuel expenses following recent LNG deliveries, which were compounded by geopolitical tensions in the Middle East and a weaker peso against the US dollar.
Wholesale Electricity Spot Market (WESM) charges also added upward pressure, jumping by ₱3.5167/kWh as average spot prices rose in Luzon and the Visayas.
Despite lower power supply agreement (PSA) charges and reduced transmission rates, these savings were offset by the soaring generation and market costs.
Meanwhile, utility executives noted that upcoming adjustments, including a distribution rate approved by the Energy Regulatory Commission (ERC) and an actual weighted average tariff (AWAT) refund, will be reflected in the next billing cycle.
Amid these pricing shifts, the ERC has suspended the reserve market to help lower transmission charges. IEMOP Vice President for Trading Operations Isidro Cacho Jr. addressed the adjustments during a separate briefing, noting the operational changes.
“We are coordinating [with the ERC] and I think based on our starting tomorrow… October 14, we’ll be issuing advisory to everyone that we are implementing it starting first interval,” Cacho said.