Metro Manila (CNN Philippines) — In addition to higher water rates and LPG prices this April, power distributor Meralco announced on Wednesday (April 6) that power rates will increase by P0.22/kWh (per kilowatt-hour) this month.
This means a typical household consuming 200 kWh can expect an additional P44 to their electricity bill.
Meralco explained the hike was mainly driven by a P0.10/kWh-increase in generation charge and a higher Feed-in Tariff Allowance (FIT-All), a fee paid to renewable energy developers.
According to Meralco, the increase in generation charge was caused by higher charges from the Wholesale Electricity Spot Market (WESM), which went up by P2.23/kWh. Peak demand in the Luzon Grid increased by more than 500 megawatts from February to March with the approach of summer.
Related: Water rates, LPG prices up in April
Meanwhile, the FIT-All will start to reflect a higher charge of P0.12/kWh beginning April, in compliance with the provisional approval issued by the Energy Regulatory Commission (ERC) last February.
“Costs of energy sourced from the Power Supply Agreements (PSAs) and Independent Power Producers (IPPs) registered slight reductions of P0.02 and P0.01/kWh, respectively,” Meralco said in a statement.
“These reductions in the PSA and IPP charges were mainly due to the higher dispatch of a number of plants under them, along with the appreciation of the peso in March.”
Other bill adjustments this April include a slight increase of P0.01/kWh for the transmission charge and an increase of P0.03/kWh for taxes and other charges.
Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges, which go to power suppliers and to the National Grid Corporation of the Philippines (NGCP).
The power distributor decreased rates in March because of a lower generation charge, and to a lesser extent, the lower cost of fuel.
Power-saving tips
Last month, Meralco spokesperson Joe Zaldariagga that power rates may go up this summer.
The power distributor shared energy efficiency tips, since the summer season normally drives people to use more electricity:
Unplug appliances that are not in use, as appliances in standby mode still consume electricity.
Keep appliances clean and properly maintained to ensure they work efficiently – poorly maintained and dirty appliances consume more electricity.
When buying new lights and appliances, it may be a good idea to consider the LED and inverter types. They might be more expensive, but they are more energy-efficient, and will ensure significant savings on electricity costs in the long run.
