MANILA, Philippines – The Manila Electric Company (Meralco) is raising power rates by P0.2834 per kilowatt-hour (kWh) in February, the electricity distributor announced on Tuesday, February 11.

The rate increase places the overall rate in February to P12.0262 per kWh from January’s P11.7428 per kWh. This translates to a P57 increase in power bills for residential households consuming up to 200 kWh.

Meralco cited higher generation charges due to higher costs from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs). IPP charges jumped due lower average plant dispatch, the depreciation of the peso and higher liquefied natural gas (LNG) terminal fees of First Gas St. Rita and San Lorenzo in Batangas.

The increase was partially offset by lower ancillary service charges due to the National Grid Corporation of the Philippines’ three-month collection adjustments for reserve market transactions in Luzon. This comes after the Energy Regulatory Commission (ERC) approved the collection of the remaining 70% of contracted ancillary service requirements.

“This month’s rates also reflected a one-time downward rate adjustment of P0.2264 per kWh and another downward adjustment of P0.0023 per kWh, both related to regulatory reset fees adjustments, also ordered by the ERC,” read part of a Meralco statement.

Energy group slams rate hike

The Power for People (P4P) coalition slammed Meralco’s latest rate hike, saying that President Ferdinand Marcos Jr. cannot fulfill his promise of lowering electricity prices as long as gas-fired plants remain a prioritized energy source.

“The path to lower energy rates for all must start with choosing the right power source and ensuring that energy companies are not unduly enriching themselves at the expense of the consumer,” P4P’s convener Gerry Arances said in a statement.

P4P warned that the hurdling of Meralco’s franchise renewal in Congress and the passage of the Philippine Downstream Natural Gas Industry Development Act in January will only drive power rates even higher.

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“The path to lower energy rates for all must start with choosing the right power source and ensuring that energy companies are not unduly enriching themselves at the expense of the consumer,” Arances said. – Rappler.com