Taxes, generation charge push Meralco rates higher in July

MANILA, Philippines – Manila Electric Co. (Meralco) customers will bear the brunt of higher power bills as increased generation charges and taxes pushed the distributor’s rates higher this month.

In a media briefing on Friday, Meralco said the overall rate increased by P0.3428 per kilowatt-hour (kWh) to P14.8261 per kWh from P14.4833 per kWh in June.

READ: WESM prices jump 23% in June as Visayas leads surge

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The increase, based on a 200-kWh residential customer, will raise a typical household’s monthly bill by about P69. Meralco’s distribution charge remains unchanged.

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The generation charge, the biggest driver of the increase, climbed by P0.1800 per kWh to P9.2504 per kWh due mainly to higher fuel costs.

Charges from First Gas/Prime CoreGen rose by P0.3613 per kWh to P10.6489 per kWh after the scheduled Malampaya shutdown forced the Sta. Rita and San Lorenzo power plants to use more expensive liquefied natural gas.

Another factor was that taxes increased by P0.0960 per kWh because LNG is subject to a 12-percent value-added tax, unlike VAT-exempt Malampaya gas.

READ: Legarda seeks review of VAT on electricity charges amid rising inflation

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In addition, ttransmission and other charges also rose by a combined P0.0668 per kWh.

Meanwhile, the Energy Regulatory Commission extended until August the suspension of the P0.0371-per-kWh Green Energy Auction Allowance. /pai INQ

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