MERALCO announced a P0.1488 per kilowatt-hour (kWh) increase in electricity rates for June, citing higher generation charges and supply pressures in the Luzon grid.
The increase brings the total residential rate to P14.4833 per kWh from P14.3345 per kWh in May. This means a typical household consuming 200 kWh will have to pay P30 more.
The utility said generation charges rose by P0.2762 per kWh to P9.0704 per kWh, largely reflecting higher Wholesale Electricity Spot Market (WESM) prices and fuel costs.
WESM rates climbed to P7.0281 per kWh due to tight supply conditions in the Luzon grid. Meralco noted that the grid was placed under Red Alert for three consecutive days from May 13 to 15, as demand surpassed 2024 record levels while generation capacity was constrained by transmission line tripping.
“The secondary price cap was imposed 3.89 percent of the time, indicating persistently high spot market prices during the period,” Meralco said.
Higher coal and liquefied natural gas (LNG) prices, as well as the continued depreciation of the peso, also contributed to higher generation costs. The company said 54 percent of power supply agreement (PSA) costs were affected by currency movements.
This was partly offset by a drop in charges from First Gas and Prime CoreGen plants, which fell by P0.1569 per kWh due to improved dispatch levels.
Meralco said transmission charges eased by P0.1525 per kWh, helping temper the overall increase, while taxes and other charges posted a net rise of P0.0251 per kWh.
Customers also continue to benefit from an ongoing refund equivalent to P0.4278 per kWh for residential users.
Despite the rate increase, Meralco cautioned that higher household electricity bills this month may also reflect increased consumption in May due to extreme heat conditions.
“While there is an increase in electricity rates this month, elevated consumption patterns observed in May is also a major factor that could drive higher power bills of customers,” Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga said.
It urged consumers to manage electricity usage and adopt energy-saving practices, including proper air conditioner maintenance, bulk ironing, avoiding overfilled refrigerators, and using LED lighting. NAZYLEN JOY MABANGLO
