Connect with us

Hi, what are you looking for?

News

Meralco power rates to increase in September

PHILIPPINE STAR/ RUSSELL PALMA

RESIDENTIAL customers in areas served by Manila Electric Co. (Meralco) can expect to pay more for electricity this month, with typical households consuming 200 kilowatt-hours (kWh) getting billed higher by P78 or P9.9365 per kWh from P9.5458 per kWh in August.

This was caused by an increase in generation charges brought on by the peso depreciation, Lawrence S. Fernandez, Meralco’s vice-president and head of Utility Economics, said at a briefing on Thursday.

The monthly power bills for homes that consume 300 kWh, 400 kWh, and 500 kWh will go up by P117, P156, and P195, respectively.

For the September billing, the generation charge went up by P0.3581 to P6.9393 per kWh from P6.5812 per kWh in August.

Mr. Fernandez said the September generation charge was based on the end-August exchange rate of P56.15 per dollar.

“If the peso continues to weaken, there will be a corresponding impact. It is part of the cost of the power plants,” Meralco Spokesperson and Head of Corporate Communications Joe R. Zaldarriaga said.

The company said charges from independent power producers rose by P0.8026, while power supply agreements (PSAs) increased by P0.3316 per kWh.

Mr. Zaldarriaga also noted that the ongoing gas supply restrictions from Malampaya gas field contributed to the increase in electricity rates.

“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,” Meralco said in a statement.

According to Mr. Zaldarriaga, Meralco has already solicited offers from various suppliers if the power arm of San Miguel Corp. terminates its PSAs.

“Meralco will enter into an emergency power supply agreement to replace the supply that may be lost from the termination of those two contracts,” he said.

On Thursday, Meralco shares closed 0.69% lower at P315.20 apiece.

Meralco is the largest power distribution company and the largest private-sector utility in the Philippines. Its controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...

News

Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...

News

Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...

News

REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...

News

Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.