Meralco customers could face higher electricity bills this May as the weaker peso puts additional pressure on power generation costs.
Meralco said the depreciation of the peso against the U.S. dollar may drive up the generation charge, one of the biggest components of a customer’s monthly electricity bill. The company explained that part of the cost of power supply is dollar-denominated, meaning a weaker peso can make imported fuel and other energy-related expenses more costly when converted into local currency.
The May billing rate has yet to be finalized, but Meralco said foreign exchange movements remain among the factors that could influence the final computation. The company also pointed to other possible drivers of monthly rate adjustments, including fuel prices, electricity demand, supply conditions, power plant availability and prices in the Wholesale Electricity Spot Market.
Meralco’s advisory comes as households continue monitoring electricity expenses during the hot season, when power consumption typically rises due to increased use of cooling appliances.
The utility firm has also said generation and transmission charges are pass-through charges, meaning they are collected from consumers and remitted to power suppliers and grid operators. Meralco added that its distribution charge has remained unchanged since August 2022.
The final May power rate is expected to determine whether the peso’s continued weakness will result in another increase for consumers already grappling with higher household expenses.
