Metro Manila (CNN Philippines, April 10) — Filipinos will see an increase in their electricity bills this April as Meralco increases generation charge.
The Manila Electric Company (Meralco) said April rates will be at P 9.89 per kilowatt-hour (kWh), after the P 0.23 increase.
This means a household which consumes 200 to 500 kWh per month will have to pay additional P 45.24 to P 113.10.
“The rate increase this month is mostly due to the upward movement in the generation charge. Contributing to the increase is the increase in the cost of power sourced from the Independent Power Producers (IPPs) and Wholesale Electricity Spot Market (WESM),” the Meralco press release read.
There are at least 28 IPPs in the Philippines which generate 83 percent of the power grid nationwide, according to the Philippine Independent Power Producers Association (PIPPA).
The high costs, according to Meralco, is due to the low dispatch of some power producers and the higher demand for electricity.
Power grid operator National Grid Corporation of the Philippines (NGCP) also put the Luzon grid on red alert on Monday afternoon due to high power insufficiency, which means electricity reserves were below minimum level.
Major power plants in Batangas such as the San Lorenzo, Sta. Rita, and Calaca plants tripped during the earthquake on weekend, causing the power supply to drop by more than 2000 megawatts (MW).
Meralco clarified, it does not earn from pass through charges like the generation charge as the amount goes to the power suppliers.
