The Manila Electric Company (Meralco) of the Philippines has raised its generation charge by 8.5 centavos per kWh to P5.3721 per kWh, signalling a corresponding increase in power bills.

Meralco said that it increased its generation charge primarily because of the higher cost of power sourced from the wholesale electricity spot market (WESM) and the IPPs.

It has been reported that the cost of power purchased from WESM increased by P1.2901/kWh to P9.7017/kWh in July, which is used in computing the August generation charge.

The cost of power supplied by the IPPs also rose by 16.65 centavos/kWh, due partly to the 9 per cent increase in the cost of natural gas from Malampaya gas field.

Meralco added that the reduction in electricity generation by Quezon Power Philippines Limited (QPPL) has also contributed to the higher power costs. The reduction was due to forced outages that curtailed the plant’s output, Meralco said.

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