The Manila Electric Company (Meralco) announced Friday an upward adjustment of P0.1543 per kWh in the electricity rate this September, bringing the overall rate for a typical household to P11.7882 per kWh from the previous month’s P11.6339 per kWh.

For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around P31 in their total electricity bill.

Driving this month’s overall rate adjustment is the P0.2913 per kWh increase in the transmission charge for residential customers due to higher ancillary service charges following the resumption of commercial operations of the reserve market on August 5.

Total ancillary service charges from the reserve market were double the charges from the National Grid Corporation of the Philippines’ (NGCP) Ancillary Service Procurement Agreements (ASPAs). The share of ancillary service charges to NGCP’s transmission rate rose to more than 50 percent.

This month’s higher transmission charge more than offset the reduction in the generation charge, which went down by P0.1547 per kWh.

Charges from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM) all registered reductions.

The decrease in the generation charge was primarily driven by the Peso’s appreciation to its strongest level since December 2023, affecting 50 percent of PSA costs and 97% of IPP costs that were dollar denominated. This led to the P0.2371 per kWh and P0.0529 per kWh reductions in PSA and IPP charges, respectively.

WESM charges also decreased by P0.0514 per kWh. This already factored in the final of four installments of deferred May 2024 WESM costs earlier ordered by the Energy Regulatory Commission (ERC).

PSAs, WESM, and IPPs accounted for 46.2%, 27.3%, and 26.4% of Meralco’s total energy requirement for the period.

Meralco reiterated its earlier advisory that customers can expect increase in generation costs from First Gas ? Sta. Rita and San Lorenzo next month following the ERC’s approval of the implementation of adjusted rates for the two suppliers.

As directed by the ERC, the Malampaya pricing under the new Gas Sale and Purchase Agreements (GSPAs) of the First Gas plants will be implemented starting September 2024 supply month, to be reflected in the October billing to customers.

In addition, the cost differential between the old and new GSPAs up to the August 2024 supply month will be recovered over 12 months beginning the October 2024 billing to customers. Meralco