Manila: The Manila Electric Company (Meralco) will increase power rates in February by PHP0.28 per kilowatt hour (kWh). This adjustment raises the electricity rates for February to PHP12.0262 per kWh from the previous PHP11.748 per kWh in January.

According to Philippines News Agency, for residential customers with a consumption of 200 kWh, this rate hike translates to an increase of approximately PHP57 in their total electricity bill for the month. The primary reason for the rise in power rates is an increase in generation charges, which have gone up by PHP0.3845 per kWh.

The increase in generation charges is attributed to higher costs from independent power producers (IPP) and power supply agreements (PSAs). However, lower rates from the Wholesale Electricity Spot Market (WESM) have helped to moderate the increase in generation charges. Meralco reported that IPPs, PSAs, and WESM contributed 29 percent, 43 percent, and 28 percent, respectively, to the company’s total energy requirement for the period.