Meralco: Expect higher power rates this August

Metro Manila, Philippines – Consumers are facing higher electricity rates this month after power distributor Manila Electric Company (Meralco) announced a hike in grid transmission charges.

On Monday, Aug. 12, Meralco said power rates will inch up by P0.0327 per kilowatt hour (kWh) this month. From July’s P11.6012 per kWh, the overall rate for August is P11.6339 per kWh.

This means residential customers consuming 200 kWh will see an addition of P7 in their bill.

“Driving this month’s overall rate adjustment is the P0.1086 per kWh increase in the transmission charge for residential customers due to higher charges of the grid operator for ancillary service, which covers reserves necessary to maintain grid reliability. For this month, ancillary service charges went up by more than 50% as charges for contingency and dispatchable reserves doubled,” Meralco explained in a statement.

“The transmission charge increase more than offset the P0.0503 per kWh reduction in the generation charge,” it added.

Meralco also advised consumers of a potential generation cost hike from power producers that utilize the Malampaya gas, specifically First Gas - Sta. Rita and San Lorenzo.

NewsWatch Plus correspondent Daniza Fernandez contributed to this report.