Meralco Reminds Public to Stay Safe Near Power Lines Amid May Rate Hike

As summer continues, the Manila Electric Company (Meralco) has issued an important reminder to the public about safety practices near power lines.

Safety First: Meralco reminds the public to avoid flying kites and picking fruits near power lines to prevent accidents and power interruptions.

To prevent accidents and power interruptions, Meralco urges individuals to avoid flying kites and picking fruits from trees located near power lines.

"We are appealing to our customers to refrain from flying kites and picking fruits near power lines since these can cause power interruptions and accidents," stated Joe R. Zaldarriaga, Meralco Vice President and Head of Corporate Communications.

Between January and March this year, incidents of power interruptions caused by kite-flying increased significantly, from 26 to 40 compared to the same period in 2023. Zaldarriaga emphasized that if kites get tangled in power lines, people should report the incidents to Meralco rather than attempting to retrieve the kites themselves.

Understanding the Increase in May Power Rates

Alongside these safety reminders, Meralco has also announced an increase in electricity rates for May 2024.

After a notable reduction last month, rates have risen by P0.4621 per kWh, bringing the overall charge for a typical household to P11.4139 per kWh, up from P10.9518 per kWh in April.

For residential customers consuming 200 kWh, this translates to an approximate P92 increase in their total electricity bill.

The primary driver of this month's rate hike is the higher generation charge, which increased by P0.4455 per kWh. Several factors contributed to this increase: Wholesale Electricity Spot Market (WESM): Costs from WESM surged by P1.7913 per kWh due to a tight supply condition in the Luzon grid during April.

Demand spiked by 2,401 MW, resulting in three days of Yellow Alert and five days with either Yellow or Red Alerts.

Additionally, the secondary price cap was triggered 19% of the time in April, compared to just 7% the previous month.

Power Supply Agreements (PSAs): Charges from PSAs rose by P0.2871 per kWh. This was due to lower excess energy deliveries priced at a discount and the implementation of an emergency PSA to meet Meralco’s supply needs while awaiting regulatory approval for PSAs selected through a Competitive Selection Process.

The depreciation of the peso, affecting 14% of PSA costs that are dollar-denominated, also played a role. However, the impact of these increases was partially offset by a P0.6942 per kWh reduction in charges from Independent Power Producers (IPPs).

This reduction was due to higher average IPP dispatch and lower fuel prices. Specifically, charges from First Gas were withheld, including costs related to the use of Liquefied Natural Gas (LNG), following an order from the Energy Regulatory Commission.

Additional Charges and Distribution Rates

In addition to the generation charge, transmission charges, taxes, and other fees saw a slight net increase of P0.0166 per kWh.

These pass-through charges for generation and transmission are paid by Meralco to power suppliers and the grid operator, while taxes and other fees are remitted to the government.

Despite these adjustments, Meralco's distribution charge has remained unchanged since the P0.0360 per kWh reduction for typical residential customers that was implemented in August 2022.

As Meralco navigates the complexities of power supply and pricing, the company remains committed to promoting safety and reliability.

Customers are encouraged to heed safety warnings regarding power lines and to stay informed about factors influencing their electricity bills. Through a combination of vigilance and understanding, the community can work together to ensure a safe and efficient use of electrical resources.