MANILA, Philippines - Consumers will have to brace themselves for a hefty increase in electricity prices this month.
Power utility Manila Electric Co. (Meralco) has alerted consumers in their franchise area to prepare for an increase in generation charge that will range from P2 per kwh to more than P3 per kwh.
"The higher fuel prices and the tightness in the supply caused by the outage of the power plants contributed to the expectation that the generation charge for December will be higher," said Larry Fernandez, head of utility economics at Meralco.
Meralco will announce the final figure on December 9, Monday.
If Meralco would increase its rates by P3.50 per kwh, consumers who consume 200 kwh will pay P700 more this month.
A consumer who uses 300 kwh will pay P1,050 more, while one who uses 400 kwh will pay P1,400 more and one who uses 500 kwh will pay P1,750 more this month.
Meralco said the big increase in power rates is due to the maintenance shutdown of Malampaya natural gas facility where several of Meralco's power suppliers get their fuel to produce electricity.
These plants are still able to produce power but now it uses the more expensive diesel fuel.
Prices in the spot market, another supplier of Meralco, have also tripled as many power plants are also on emergency or scheduled shutdown.
Meralco spokesman Joe Zaldarriaga assured electricity prices will go down by February.
Even higher rates in the future?Even the expenses for the rehabilitation of hundreds of transmission and distribution lines damaged by the super typhoon are in danger of being passed on to consumers.
Energy Secretary Jericho Petilla earlier said there is no update yet on the possibility of charging the expenses -- pegged at P6.5 billion -- to the Malampaya Fund.
Based on estimates by the Energy Regulatory Commission, each billion peso translates to an increase of P0.02/kwh.
But the ERC assured all petitions will be studied carefully to ensure that only legitimate expenses are charged to all consumers nationwide.
From
ABS-CBNnews.com
