Meralco hikes generation charge during dry season

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Meralco announced that it may raise the generation charge by P0.92 per kilowatt-hour starting this month until May to recover P1.1 billion in generation costs due to the Malampaya shutdown. | MegINQ /PDI

“The total deferred generation costs of P1.1 billion, equivalent to 40 centavos per kWh, will be collected on a staggered basis in the April and May billing periods as cleared by the regulator,” it added.

Generation charge refers to the cost of purchased power from suppliers and accounts for more than 50 percent of the total electricity bill.Meralco clarified, however, that the total power rate increase for March — which would include other billing components, such as transmission charge — has yet to be finalized.

The company informed the ERC earlier this week that it wanted to implement a deferred collection of around P1.1 billion in generation charges for the months of January and February.The two-week shutdown of the Malampaya gas field largely influenced the increase, Meralco said, as it forced two power plants to use “more expensive” alternative fuels to ensure continuous power supply.

It added that higher prices in the spot market further contributed to the expected increase in generation charge.

 

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Meralco to stagger implementation of P1.1B deferred generation charges in April, May billing periodTo cushion the impact of higher generation costs incurred in February, the Manila Electric Company (Meralco) said Wednesday it is deferring the collection of P1.1 billion worth of generation charges this month to April and May billing periods.
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