Electricity consumers in the Philippines may face another increase this February, signaling a potential second hike since the start of the year, according to the Manila Electric Co. (Meralco).
Joe Zaldarriaga, Meralco's vice president and head of corporate communications, told The Philippine Star that initial indications are pointing towards an upward pressure for electricity bills this month.
Rise in Electricity Bills in the Philippines
The potential rise in electricity bills is attributed to the resumption of collecting the feed-in tariff allowance, a development that will soon reflected through the Energy Regulatory Commission.
Zaldarriaga further noted that the surge in the generation charge was also due to increased fuel prices, like the imported liquefied natural gas utilized by gas-fired power plants.
In January, Meralco announced an upward adjustment of P0.0846 per kilowatt-hour, resulting in an overall rate of P11.3430 per kWh. The December 2023 rate stood at P11.2584 per kWh, according to The Philippine Star.
Wholesale Electricity Spot Market
The Wholesale Electricity Spot Market (WESM) experienced a hike of P0.5611 per kWh due to higher average capacity on outage in Luzon. Additionally, independent power producers saw an increase of P0.1384 per kWh, attributed to higher fuel costs.
Despite these hikes, Zaldarriaga remains optimistic that lower WESM prices and lower energy demand due to the cool weather during the January supply month will somehow avert the price increase.
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