Electricity rates are anticipated to increase in the current month due to higher generation and transmission charges for the January supply month. Meralco attributes the expected rise in generation charge to the Peso's depreciation, which impacts the costs of dollar-denominated suppliers. Additionally, a rise in transmission charge is anticipated due to the collection of the remaining 70% of reserve market settlement fees from March 2022. However, a one-time refund of regulatory reset costs for distribution utilities, amounting to approximately 23 centavos per kWh for Meralco customers, may mitigate these upward pressures.
Electricity rates this month are expected to go up due to higher generation and transmission charge s for the January supply month.
“We are still waiting for all the final billings from our suppliers but initial indications point to a higher generation charge due to Peso depreciation, which affects costs of our suppliers which are mostly dollar-denominated,” said Meralco vice president and head of corporate communications Joe Zaldarriaga said.
To recall, the Energy Regulatory Commission directed the recovery of these fees over a period of three months beginning the February billing. “We hope these upward pressures will be somehow tempered by the one-time refund of regulatory reset costs of distribution utilities similarly ordered by the ERC effective this month. This is equivalent to around 23 centavos per kWh for Meralco customers,” Zaldarriaga said. Know more
Electricity Rates Generation Charge Transmission Charge Peso Depreciation Regulatory Reset Costs
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