PASIG CITY, Philippines — Consumers in the Manila Electric Company (Meralco) franchise area will face higher electricity bills this month, driven by rising power generation expenses, higher taxes, and transmission adjustments.
Meralco announced a price increase of ₱0.49 per kilowatt-hour (kWh) for November, bringing the typical household rate to ₱15.5510 per kWh. Under this adjustment, a household consuming 200 kWh monthly will see an increase of roughly ₱98 on their bill.
Generation and Fuel Pressures
While Meralco’s power supply agreements (PSAs) registered a slight decline, charges from First Gas and Prime CoreGen surged by ₱2.9241 per kWh. This jump was primarily fueled by higher fuel expenses stemming from the quarterly repricing of Malampaya natural gas and elevated liquefied natural gas (LNG) prices.
Plant charges were also impacted by the Philippine peso’s recent decline against the US dollar, as a significant portion of these costs is dollar-denominated. Furthermore, First Gas and Prime CoreGen increased their LNG consumption to 44% to supplement declining Malampaya gas supplies.
In the regional market, Luzon experienced higher wholesale electricity spot market (WESM) costs, which jumped by ₱4.3946 per kWh.
Taxes and Transmission Adjustments
Overall rates were further pushed up by a net increase of ₱0.2165 per kWh in taxes and other pass-through charges. This was largely driven by higher value-added taxes (VAT) resulting from a reduced supply of indigenous natural gas, which is normally exempt from the 12% VAT.
Meanwhile, transmission charges from the National Grid Corp. of the Philippines (NGCP) ticked up slightly by ₱0.0080 per kWh.
The Energy Regulatory Commission’s (ERC) approval of a higher maximum allowable revenue (MAR) pushed transmission rates up by ₱0.1721 per kWh, though this increase was nearly neutralized by a ₱0.1641 per kWh drop in ancillary service charges following the suspension of the reserve market last October 14.
Distribution, supply, and metering (DSM) charges for residential customers also saw a minimal uptick of ₱0.0096 per kWh, reflecting the rollout of new distribution tariffs approved by the ERC for the first regulatory period (1RP).
Relief Through Tariff Refund
To help cushion the impact of the rate adjustment, Meralco has begun implementing a new refund of its actual weighted average tariff (AWAT), amounting to ₱0.1733 per kWh for residential customers. This refund will run for six months or until the total amount has been fully returned to consumers.