Meralco cleared to hike power cost by P0.33 per kWh

By Alena Mae S. Flores – August 15, 2024, 7:30 pm
from manilastandard.net

The Energy Regulatory Commission (ERC) approved power retailer Manila Electric Co.’s (Meralco) bid to implement an increase of up to P0.33 per kilowatt-hour to recover the fuel costs of its gas plants for 12 months starting October 2024.

The ERC, in its notice of resolution dated Aug. 13, 2024, allowed First Gen Corp.’s subsidiaries First Gas Power Corp. (FGPC) and FGP Corp. (FGP) to recover the difference between the previously approved pass-through costs and the landed cost of liquefied natural gas (LNG) and the new gas sale purchase agreement (GSPA).

It also authorized Meralco to collect the costs from consumers over a period of 12 months commencing from the October billing.

ERC chairperson Monalisa Dimalanta said the possible increase in Meralco’s rates would reach up to P0.33 per kWh per month, or equivalent to P66 for households consuming 200 kWh each month. Meralco has yet to release its own computation.

Dimalanta said the actual rates would depend on the LNG utilization of the gas plants.

The ERC, in its resolution, allowed FGPC and FGP to recover the landed cost of the regasified LNG for the Sta. Rita and San Lorenzo Power Plants during fuel supply force majeure events, subject to the terms of the power supply agreements and other conditions.