THE Manila Electric Company (Meralco) raised the possibility of increased electricity rates by May of this year.
This was announced by Larry Fernandez, Vice President and head of Utility Economics of Meralco during a hearing by the Senate Committee on Energy,
He said that it will be during that time that the impact of the successive oil price increases due to the Russia-Ukraine crisis will be most felt.
Fernandez, however, failed to provide an estimate as to how much increase in electricity rates will be implemented.
He said that because of the continued increase in petroleum prices, this created an impact on the expenses of power generation companies where Meralco buys electricity it supplies to its customers.
Fernandez explained that natural gas is used by Malampaya, the biggest source of electricity by First Gas, from whom Meralco buys electricity.
Once global prices of crude oil goes up, Malampaya also increases its prices.
The selling price of Malampaya to First Gas will reflect on the generation charge in May, which in turn will be passed on to consumers.