THE Manila Electric Co. (Meralco) has announced the increasing electricity rates for the month of September as costlier fuel and weaker local currency pulled up generation costs.
In a statement, Meralco said the overall rate for a typical household was hiked by 39.07 centavos per kilowatt-hour (kWh) this month to P9.9365/kWh from P9.5458/kWh in August.
The rate adjustment translates to an increase of around P78 in the total bill of residential customers consuming 200 kWh for the month.
Meralco said that higher fuel cost and weaker peso caused the generation charge to go up.
It said that generation charge for September increased by 35.81 centavos to P6.9393/kWh from P6.5812/kWh in the prior month.
Meanwhile, charges from the Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) also went up by 80.26 centavos and 33.16 centavos per kWh, respectively, “driven by higher fuel costs and peso depreciation.”
Meralco said the ongoing Malampaya gas supply restriction necessitated the increased use of more expensive alternative fuel by First Gas Sta. Rita and San Lorenzo to ensure continuous supply.
The company said peso depreciation also pushed up charges from the IPPs and PSAs since 98% of total IPP costs and 36% of PSA costs are dollar-denominated.
The continued rise in international coal prices also contributed to the PSA rate increase, it added.
