Meralco rates surge in July 2024 as it starts collection of deferred costs

MANILA, Philippines – Typical households consuming 200 kilowatt hours (kWh) monthly can expect a jump of around P430 in their total electricity bill in July, as the Manila Electric Company (Meralco) is set to begin collecting deferred costs.

Meralco on Monday, July 15, announced an upward adjustment of P2.1496 per kWh in the electricity rate for July, amid a higher generation charge. This brings the overall rate to P11.6012 per kWh from June’s P9.4516.

“Coming from a significant reduction last month, the generation charge went up this July by P2.0021 per kWh as [Wholesale Electricity Spot Market] charges returned to normal levels as a result of the Energy Regulatory Commission’s (ERC) directive to stagger the collection of the charges for the May supply month in four equal monthly installments until September 2024,” Meralco said.

The ERC approved the staggered collection of around P500 million for generation costs incurred in May, following the request of Meralco, as well as Quezon Power (Philippines), San Buenaventura Power, and South Premiere Power Corporation.

Lower demand in the Luzon grid mitigated the increase in further charges.

The release of Meralco bills will again be delayed as the utility firm “sought guidance from the ERC on the implementation of this month’s rate adjustment.”

“Rest assured that Meralco will adjust the due dates to give our customers enough time to settle their bills,” Meralco head of corporate communications Joe Zaldarriaga said. – Rappler.com