Higher electricity bills to burden Filipinos this Christmas
BY Gabriell Christel Galang – Dec 10, 2024 01:04 PM
from Manila Bulletin
Filipino families looking forward to a bright and festive Christmas may find their holiday cheer dimmed slightly by an unexpected Grinch: higher electricity bills.
The Manila Electric Company (Meralco) announced on Tuesday, Dec. 10, a P0.1048 per kilowatt-hour (kWh) increase in electricity rates for December, primarily due to a higher generation charge.
According to Meralco, this adjustment will bring the overall rate for a typical household to P11.9617 per kWh, up from P11.8569 per kWh in November.
“For our residential customers with a consumption of 200 kWh, this translates to an upward adjustment of P21 in their total electricity bill this month,” Joe R. Zaldarriaga, Meralco vice president and head of corporate communications, said in a statement.
Zaldarriaga explained that the increase in the generation charge was driven by higher costs from the Wholesale Electricity Spot Market (WESM) and Power Supply Agreements (PSAs).
WESM charges rose by P0.2531 per kWh due to tighter supply conditions in the Luzon grid, while PSA charges increased by P0.1050 per kWh due to Peso depreciation and lower average dispatch.
Partially offsetting these increases was a P0.0410 per kWh decrease in charges from Independent Power Producers (IPPs).
“The impact of peso depreciation, which affected around 98 percent of IPP costs, was more than offset by higher average IPP dispatch,” the company said, citing the return to normal operations of First Gas Sta. Rita Modules 20 and 30.
Zaldarriaga, meanwhile, noted that transmission charges decreased by P0.0940 per kWh due to lower ancillary service charges.
Meralco’s distribution charge remains unchanged since the P0.0360 per kWh reduction in August 2022.
The company, meanwhile, reminded customers to practice electrical safety during the holiday season, encouraging them to avoid overloading outlets, inspect Christmas lights, and unplug appliances when not in use.
