Meralco revealed on Friday that electricity consumers will experience a surge in power rates this September with an increment of P0.50 per kilowatt-hour (kWh). The hike in rates is attributed to increased generation charges driven primarily by the declining strength of the peso against the US dollar.
Generation charges have risen to P6.8252 per kWh. According to the power distributor, this increment is influenced by the heightened costs incurred from power supply agreements (PSAs) and independent power producers (IPPs). Charges associated with PSAs escalated by P1.0362 per kWh, and IPP charges saw an increase of P0.4776 per kWh.
Approximately 98% of IPP costs, which are stipulated in US dollars, were affected by the weakened peso. Moreover, restrictions on the Malampaya gas supply prompted First Gas plants to resort to pricier alternative fuel sources, further pushing the generation charges upward.
Consequently, consumers will observe the following increment in their electricity bills:
- 200 kWh: P100 increase
- 300 kWh: P150 increase
- 400 kWh: P200 increase
- 500 kWh: P250 increase
On a positive note, Meralco highlighted that there was a decrease in the Wholesale Electricity Spot Market (WESM) charges by P0.5034 per kWh, as well as a slight reduction in transmission costs for residential consumers by P0.0081 per kWh.
It is worth noting that just last month, Meralco implemented a rate cut of P0.29 per kWh as a result of lower generation charges. Despite the previous reduction, consumers are bracing for a higher electricity bill this September as the nation grapples with economic challenges.