Meralco Hikes July Power Rates Amid Elevated Fuel Costs

MANILA, Philippines — Over eight million Meralco customers will face higher power rates this month, amid elevated fuel costs spurred by ongoing Middle East tensions. Meralco spokesman Joe Zaldarriaga yesterday announced an increase of P0.3428 per kilowatt-hour in July, bringing the overall rate to P14.8261 from the prior month’s P14.4833 per kWh. The adjustment translates to an additional P69 in the electricity bills of typical residential customers consuming 200 kWh. Zaldarriaga said higher fuel prices primarily drove the increase in generation charge, which rose by P0.18 per kWh to P9.2504 per kWh from P9.0704 per kWh in June. Transmission and other charges also climbed by P0.0668 per kWh, while taxes increased by another P0.0960 per kWh. The generation charge covers the cost of electricity procured by Meralco from suppliers, while the transmission cost is paid to the grid operator for transporting electricity from power plants to distribution networks. Taxes and other charges are all remitted to the government. The distribution charge, the only portion that goes to Meralco, has not changed since the P0.036 per kWh reduction in August 2022. The Energy Regulatory Commission (ERC) extended the collection suspension for the green energy auction allowance until August. The charge, equivalent to P0.0371 per kWh, supports the development of renewable energy projects such as hydropower, biomass, solar and wind facilities. The ERC, meanwhile, clarified reports regarding a complaint supposedly filed before the Office of the Ombudsman accusing the regulator of allowing Meralco to earn a rate of return exceeding 12 percent. The commission maintained that it did not violate any law, noting that neither the Electric Power Industry Reform Act (EPIRA) nor the Public Service Act imposes a 12 percent cap on the allowable rate of return. Sen. Bam Aquino has filed a resolution seeking a Senate investigation into the country’s high electricity rates, saying rising power costs continue to burden Filipino families and small businesses. Senate Resolution 508, filed on July 9, calls for an inquiry, in aid of legislation, into electricity prices and a review of existing energy laws and policies to identify reforms that would make power more affordable and reliable. The proposed inquiry will also examine the EPIRA and other energy laws to determine whether amendments are needed to strengthen consumer protection and improve the performance of the power sector. Meanwhile, Sen. Risa Hontiveros called on the ERC yesterday to suspend the disconnection of electricity service for consumers disputing their Meralco bills over alleged erroneous meter readings. The senator said consumers should not be compelled to pay disputed charges simply to avoid having their electricity disconnected while their complaints are under investigation. She issued the appeal following complaints from consumers who claimed they received unusually high electricity bills because of incorrect meter readings.