power and water

For 6th straight month, Meralco rates up in September 2021

Aika Rey
Households consuming 200 kilowatts per hour should expect an increase of around P21 in their September bill

Manila Electric Company (Meralco) is increasing rates again in September.

Meralco rates have been going up monthly for the past half year, with its highest rate in 2021 recorded in September at P9.1091 per kilowatt-hour (kWh). This is P0.1055 higher than August’s P9.0036.

The latest hike is equivalent to increases for households consuming the following, for example:

  • P21.10 for 200 kWh
  • P31.65 for 300 kWh
  • P42.20 for 400 kWh
  • P52.75 for 500 kWh

Meralco attributed the increase to a higher generation charge, which makes up 55% of consumers’ electricity bills. For the September bill, the generation charge was up by P0.1117 to P5.0439 per kWh.

Charges from power supply agreements (PSAs) and independent power producers (IPPs) increased by P0.2494 per kWh and P0.0955 per kWh, respectively.

PSA charges were up due to lower demand, leading to excess energy deliveries, while the lower average plant dispatch led to higher IPP charges.

Meanwhile, lower demand in the Luzon grid led to lower Wholesale Electricity Spot Market rates. Meralco said the rate would have been further reduced by P0.5646 per kWh if not for the correction in the net settlement surplus component in the July 2021 WESM bill.

The WESM share was up to 10%, while IPPs and PSAs provided 36.8% and 53.2%, respectively.

Meralco said the distribution rate refund worth P0.2761 per kWh slightly mitigated the increase in charges.

Transmission charges were down by P0.0520 to P0.6803 per kWh due to lower ancillary service charges. Subsidies, taxes, and other charges, meanwhile, inched up by P0.0458 per kWh.

Meralco has said that disconnection activities remain suspended in areas placed under stricter quarantine restrictions. – Rappler.com

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Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.