Meralco hikes rates on generation fees

INQUIRER file photo

Manila Electric Co. (Meralco) consumers will pay higher electricity bills this month after the distribution utility raised its overall residential rate, mainly due to increased generation costs brought about by higher fuel prices and higher taxes.

In a media briefing on Friday, Meralco vice president and head of corporate communications Joe Zaldarriaga said the overall rate for a typical household increased by P0.3428 per kilowatt-hour (kWh) to P14.8261 per kWh in July from P14.4833 per kWh in June.

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“We’d just like to emphasize that the generation cost is the main driver of the increase in the total overall electricity bills for the month of July. Our rates for the month increased by 34.2 centavos per kWh and because of this, we can see in our bill the additional costs,” Zaldarriaga said.

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For a household consuming 200 kWh, the adjustment translates to an additional P69 in the monthly electricity bill.

The company said the generation charge was the biggest contributor to the increase, rising by P0.1800 per kWh to P9.2504 per kWh from P9.0704 per kWh in the previous month. Higher fuel prices drove the increase.

Wholesale Electricity Spot Market prices also rose to P8.0337 per kWh after Luzon demand hit a record 14,534 megawatts on May 28.

Freeze disconnections

Meanwhile, Sen. Risa Hontiveros on Friday called for a “disconnection freeze” for consumers who are contesting their Meralco bills over supposedly incorrect meter readings.

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“Consumers who were erroneously charged should not be forced to pay disputed charges just to keep their lights on,” Hontiveros said in a press release. “It isn’t their fault that the meter reading was faulty. Consumers should not be the ones adjusting.”

The senator made the appeal after consumers reported unusually high electricity bills due to allegedly erroneous meter readings.

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Hontiveros cited one case in which a household was billed for electricity consumption even though its circuit breakers had been switched off while the family was away on vacation.

According to Hontiveros, Meralco later acknowledged that the billing resulted from a meter reader’s error.

Despite this, the Energy Regulatory Commission (ERC) advised consumers disputing their bills to pay the charges under protest to avoid service disconnection while complaints are being investigated.

Hontiveros said the policy places an unfair burden on households already struggling with their finances.

“If the billing dispute is legitimate, it is unfair to force consumers to pay first. They could have used that money for other essential household expenses for the month,” she said.

Consumer protection

The senator also urged the ERC to strengthen consumer protection by ensuring a faster and fairer process for resolving complaints

Hontiveros said she would file a Senate resolution seeking an inquiry, in aid of legislation, by the Senate Committee on Energy into the reported cases of erroneous meter readings and billing disputes.

She said the proposed inquiry aims to determine the extent of the problem, review existing consumer protection measures and identify reforms to protect consumers from unjust billing practices.

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The Inquirer sought comments from Meralco and the ERC but had yet to receive one as of posting time.