Manila: Manila Electric Company (Meralco) reported that electricity rates will see an increase of approximately PHP0.15 per kilowatt-hour (kWh) in June due to higher generation charges. In a virtual briefing, Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga explained that this adjustment raises the overall rate for a typical household to PHP14.4833/kWh this month from PHP14.3345/kWh in May.
According to Philippines News Agency, for residential customers consuming 200 kWh, the adjustment will result in an increase of PHP30 in their total electricity bill. The generation charge has risen by PHP0.27/kWh to PHP9.0704 this month, up from PHP8.7942/kWh last month. Additionally, Wholesale Electricity Spot Market (WESM) prices surged to PHP7.0281/kWh due to tight supply conditions in the Luzon grid, which faced a red alert from May 13 to 15 as electricity demand exceeded records set in 2024.
Meralco noted that as a consequence, the secondary price cap was imposed 3.89 percent of the time, reflecting persistently high spot market prices during this period. This was somewhat offset by lower line rental and other charges after the suspension of WESM operations was lifted on May 1.
The company stated that customers were largely shielded from increases in line rental charges, as a significant portion of these costs was absorbed by Meralco's suppliers under recently regulator-approved power supply agreements (PSAs). However, for pre-EPIRA power supply contracts with the Sta. Rita and San Lorenzo gas plants, line rental charges are fully passed through to consumers.
Excluding line rental adjustments, PSA charges saw a slight increase of PHP0.0941/kWh, primarily due to the continued depreciation of the peso affecting 54 percent of PSA costs and higher world market prices for coal and liquefied natural gas (LNG). Charges from the Sta. Rita and San Lorenzo gas plants of First Gas/Prime CoreGen decreased by PHP0.1569/kWh due to improved average dispatch. Meralco indicated that this offset the impact of higher fuel costs resulting from increased LNG usage and peso depreciation, impacting 99 percent of First Gas/Prime CoreGen's charges.
PSAs, First Gas/Prime CoreGen, and WESM accounted for 69 percent, 21 percent, and 10 percent, respectively, of Meralco's total energy requirements during the period. The transmission charge declined by PHP0.1525/kWh, while taxes and other charges increased slightly by PHP0.0251/kWh.
Meralco also highlighted that significantly higher consumption due to extreme heat could affect the bills customers will receive this June. Zaldarriaga remarked that elevated consumption patterns observed in May are a significant factor potentially driving higher power bills for customers, in addition to the rate increase.
The company urged customers to continue managing and monitoring their electricity consumption by checking the historical consumption chart included in their bills or using the Meralco Appliance Calculator for detailed energy consumption information of appliances. Furthermore, Zaldarriaga encouraged customers to learn how to read their electric meters to gain better visibility into their actual consumption and adopt habits that help manage electricity costs more effectively.
