MANILA (UPDATE) -- Meralco is raising electricity rates this December. 

The power distributor told reporters Tuesday that power prices are climbing by P0.1048 per kilowatt-hour because of an increase in the generation charge.

This means power prices are going up by the following amounts:

Consumption  Increase

200 kwh          P21

300 kwh          P31

400 kwh          P42

500 kwh          P52

In a statement, Meralco said generation charges went up by P0.1839 per kWh because of higher costs from the Wholesale Electricity Spot Market (WESM) and Power Supply Agreements (PSAs).

WESM charges went up by P0.2531 per kWh with the tighter supply conditions in the Luzon grid. Charges from PSAs, meanwhile, increased by P0.1050 per kWh because of the peso’s depreciation.

There was, however, a P0.0410 per kWh decrease in charges from independent power producers. Transmission charges also fell by P0.0940 per kWh due to lower ancillary service charges from the reserve market. Taxes also went up by P0.0149 per kWh.

MORE HIKES COMING?

But in the first 3 months of 2025, the transmission charge will have an automatic add-on after the Energy Regulatory Commission ordered the recovery of the 70 percent costs incurred by the National Grid Corp of the Philippines from utilizing several power plants for its ancillary services.

That translates to an increase of P0.12/kwh every month starting January 2025 until March 2025 in the transmission charge part of the Meralco bill. For Visayas customers, the tucked-in increase is also P0.12/kwh every month but for 6 months from January to June 2025. For Mindanao consumers, the increase is lower at P0.03/kwh for 3 months starting January to march 2025.

WATER RATE HIKE TOO

The Metropolitan Waterworks and Sewerage System board has also approved the rate hike of both Maynilad and Manila Water starting January 2025.

The MWSS regulatory office will announce the actual hike this Thursday but sources from the MWSS claim Maynilad was allowed to increase its tariff by almost P4/cubic meter while Manila Water will hike