Meralco Blames External Factors for Power Rate Hikes

Meralco, the largest power distributor in the Philippines, has attributed recent power rate hikes to external factors beyond its control.

The company cited soaring fuel prices, peso depreciation due to the Middle East conflict, and the government's shift to natural gas as contributing to higher generation charges.

According to Atty. Jose Ronald V. Valles, Meralco's senior vice president for regulatory management, 'Power from natural gas is generally more expensive than coal, even before this period of geopolitical tensions.'

Meralco sources around 50 percent to 60 percent of its supply requirements from natural gas plants, which are more expensive than coal-fired power plants.