Refund completion triggers Meralco rate hike in June

MANILA, Philippines — Customers of Manila Electric Co. (Meralco) would likely pay higher power bills in June, as the decrease in generation charges were offset by the completion of a distribution-related refund that had helped temper high energy prices in the past two years.

In a statement, Meralco said its overall rate jumped by P0.4183 per kWh in June, which would translate to an increase of around P84 in the total bill of a household with monthly average consumption of 200 kWh.

Explaining the upward adjustment, Meralco said it had completed the refund that regulators ordered the company to pay to customers. Those refunds, which amounted to P48.3 billion, helped temper the increases in the electricity bills for Meralco customers in the past two years.

Meralco said this month’s rate would have been higher if not for the decline in generation charges, which went down by P0.4195 per kWh. This no longer included the recovery of deferred generation cost for the March bills.

The company said it paid less for energy it bought from pre-agreed supply deals and independent power producers. In June, these two sources accounted for 88% of Meralco’s energy needs.

This mitigated the P2.0187 per kWh increase in energy prices in the spot market, where the company bought power at much higher costs to meet high demand during the dry season.

Despite the onset of the rainy season, Meralco said it still “encourages the public to continue practicing energy efficiency and conservation to better manage electricity consumption.”