Oliver Bugarin 3 0 0 3 min to read

High oil prices and a weak peso drive up Meralco rates.

September will see a rise in electricity prices in Manila Electric Co. (Meralco) franchise areas, primarily as a result of increasing fuel costs and currency devaluation.

Meralco announced on Tuesday that it would raise its electricity tariffs by PHP0.3907 per kilowatt hour, bringing them from PHP9.5458 per kWh last month to PHP9.9365 per kWh.

First Gas Sta. Rita and San Lorenzo claimed in a statement that the prolonged Malampaya gas supply limitation forced them to use more expensive alternative fuel to maintain supply.

The weaker peso, which accounts for 98% of all IPP and 36% of PSA costs, raised the fees charged by independent power producers (IPPs) and power supply agreements (PSAs).

The Philippine peso reached a record low against the dollar, at PHP57.

On the other hand, the Luzon grid’s improved power supply countered increased IPP and PSA costs with reduced wholesale electricity spot market (WESM) prices.

According to Meralco, the WESM fee reduction is PHP3.7473 per kWh.

This month, residential customers’ transmission fees decreased by PHP0.0432, while taxes and other fees increased by a net of PHP0.0758 per kWh.

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