Manila Electric Co. (Meralco) customers may face higher electricity bills this month as the power distributor hints at another rate increase.
In a statement released on Monday, Meralco’s vice president and spokesperson Joe Zaldarriaga indicated that the pressure to raise rates in June is mounting. This increase is expected to be driven by settlement costs in the reserve market and an uptick in the feed-in-tariff allowance (FIT-All) that will be reflected in customers’ bills.
The Energy Regulatory Commission (ERC) recently lifted a suspension on settling transactions in the reserve market, allowing generation companies to recover a portion of their costs. This decision could see power generators recouping an initial 30 percent of trading transactions at the reserve market.
Additionally, Meralco confirmed that the ERC approved a higher FIT-All rate starting this month, resulting in an increase of P0.0474 per kilowatt-hour (kWh). FIT-All is a charge in electricity bills that incentivizes cleaner energy sources.
Zaldarriaga also mentioned that the generation charge might increase due to the tight power supply in the Luzon grid. Factors such as the peso depreciation and historical data on Wholesale Electricity Spot Market (WESM) prices during the summer season could contribute to higher generation charges in June.
Last month, Meralco announced a P0.46 per kWh increase in overall power rates, following a significant drop in April. The Private Electric Power Operators Association expressed support for renewing Meralco’s franchise, citing the company’s operational excellence and resilience in providing reliable electricity.
