Power retailer Manila Electric Co. said Thursday consumers will experience a power rate increase of P0.3907 per kilowatt-hour in September.
Meralco spokesperson Joe Zaldarriaga said the adjustment is equivalent to an increase of P78 in the monthly bills of residential customers consuming 200 kWh. The overall rate for a typical household rose to P9.9365 per kWh from P9.5458 per kWh in August.
“What’s the reason behind this adjustment? It’s basically the higher fuel costs and weaker peso which pushed the generation cost upward,” said Zaldarriaga.
He said the rate increase followed two consecutive months of reductions amounting to P0.9154 per kWh.
The generation charge for September increased P0.3581 to P6.9393 per kWh from P6.5812 per kWh in the previous month.
Meralco’s charges from the independent power producers and power supply agreements rose P0.8026 and P0.3316 per kWh, respectively, driven by higher fuel costs and peso depreciation against the greenback.
“The ongoing Malampaya gas supply restriction necessitated the increased use of more expensive alternative fuel which is utilized by First Gas Sta. Rita and San Lorenzo to ensure there is a continuous supply of electricity and fuel so that the power plants continue to run,” Zaldarriaga said.
The peso depreciation also pushed up charges from the IPPs and PSAs as 98 percent of total IPP costs and 36 percent of PSA costs were dollar-denominated.
The continued rise in international coal prices also increased the PSA rate. The higher PSA and IPP costs were partly mitigated by lower charges from the Wholesale Electricity Spot Market, which registered a reduction of P3.7473 per kWh as the supply situation in the Luzon grid improved.
Meralco said there was no yellow alert in August and the frequency of secondary price cap imposition went down to 4.7 percent of the time from 27.62 percent in July, with the decrease in average daily peak demand.