Higher electricity bills are affecting consumers this April amid increased power rates and seasonal demand, according to the Manila Electric Company (Meralco).
Consumers in the Philippines are experiencing a noticeable increase in their electricity bills this April, driven by a recent increase in power rates and higher electricity consumption during the hot season. The Manila Electric Company (Meralco), the country’s primary power distributor, announced a rate increase of 53 centavos per kilowatt-hour for April, attributing the hike to rising generation charges. These higher charges are partially linked to a weaker Philippine peso against the US dollar and the increased cost of gas plants, which provide a significant portion of the country’s power supply.
Meralco’s corporate communications head, Joe Zaldarriaga, explained that gas plant prices have risen and that the currency depreciation has also impacted costs. However, he noted that further impacts from the ongoing oil crisis related to Middle East tensions have yet to be reflected fully in electricity rates.
Customers like Hazel reported receiving bills significantly higher than usual, even when their electricity usage was similar to the previous year, citing increased air conditioning use as a contributing factor. Similar complaints have surfaced online, with some consumers reporting additional charges of over 4,000 pesos, including nearly 1,000 pesos in taxes.
Meralco broke down the components of electricity costs: approximately 55% of the bill comes from generation charges, 10.1% from transmission charges, 17.5% from distribution costs, 11.7% from taxes, and 5.7% from other charges.
Furthermore, pass-through charges and subsidies, including those for senior citizens and beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps), are determined and collected by the government. The lifeline rate subsidy is provided to eligible households certified by local social welfare offices.
Meralco has not yet announced if power rates will change in May but plans a partial refund of 23 centavos per kilowatt-hour for residential customers, spreading P14 billion over 12 months instead of 36. The company also hopes for full implementation of tax exemptions on indigenous energy sources, such as gas plants, which could help reduce electricity costs in the future.
Sources referenced:
- https://www.gmanetwork.com/news/topstories/metro/985409/bill-shock-hits-power-consumers-amid-summer-surge/story/
