By Alena Mae S. Flores

Customers of Manila Electric Co. will pay higher generation charge of P0.025 per kilowatt-hour this month due to higher cost of power from the wholesale electricity spot market and National Power Corp. as a result of the onset of the dry season.

“After three straight months of reductions in the Meralco generation charge, customers will see a slight rise in the generation charge by P0.025 per kWh in March,” Meralco vice president Ivanna de la Peña said.

“Customers will actually see a net P0.015 per kWh reduction in their March bills” due to the P0.04 per kWh refund from the currency exchange rate mechanism will be implemented this month, she added.

Meralco said the higher cost of supply from WESM and Napocor due to the warmer weather was offset by a decline in the average selling rate of independent power producers to Meralco, resulting in minimal P0.025 per kWh increase in the generation charge.

It said the cost of WESM supply was tempered by the P224- million net settlement surplus in November and December 2008, which was returned to customers this month.