Meralco announces decrease on electricity rates for two consecutive months

MANILA, Philippines — The Manila Electric Company (Meralco) announced lower power rates for two consecutive months, as overall electricity rates for a typical household consuming 200kWh decreased to P10.0918 per kWh from last month’s P10.2866 per kWh.

The downward adjustment of P0.1948 per kWh will mean a decrease of around P39 in the total bill. This represents a total downward adjustment of around P0.47 per kWh since May 2019.

Lower generation charge

From P5.5508 per kWh last month, generation charge for June went down to P5.4158 per kWh, a decrease of P0.1350 per kWh.

The generation charge decrease is primarily due to lower charges from the Wholesale Electricity Spot Market (WESM), despite increases in the charges of Independent Power Producers (IPPs) and Power Supply Agreements (PSAs).

Purchases from the WESM decreased by P0.3100 per kWh despite continued tightness of supply conditions in the Luzon grid. While the number of days on Red Alert as declared by the National Grid Corporation of the Philippines (NGCP) decreased from 7 to 2 in May, the number of days on Yellow Alert increased from 7 in April to 13 this month due to higher demand for power.

WESM provided 9% of Meralco’s supply needs.

On the other hand, cost of power from IPPs and PSAs increased by P0.0556 per kWh and P0.0717 per kWh, respectively, partly due to the weakening of Peso against US dollar.

Dollar-denominated costs of IPPs and PSAs account for 97% and 68% of their charges, respectively. IPPs and PSAs provided 41% and 50% of Meralco’s supply needs, respectively.

Meanwhile, San Buenaventura power plant, a new PSA of Meralco with power facilities located at Mauban, Quezon, started commissioning tests this month and provided 2% of total energy requirements.

There were also new interim PSAs this month, particularly, Therma Mobile and Millennium Energy that provided additional capacity in Luzon as emergency supply.

Decrease on other charges

Transmission charge for residential customers decreased by P0.0427 per kWh, primarily due to lower Ancillary Service Charges. Taxes and other charges also decreased by P0.0171 per kWh.

Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 47 months, after these registered reductions in July 2015.

Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges.

Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the FIT-All rate are remitted to the government.

Energy efficiency tips

As summer closes, Meralco still encourages its customers to continue practicing energy efficiency initiatives to help manage their electricity consumption.

These include everyday household tips that may help save energy, such as:

1. Unplugging appliances when not in use to avoid “phantom load”
2. Using the aircon at mid-setting or at 25 degrees Celsius for maximum efficiency
3. Using a power board or strip which can supply power to several appliances at once and allows a user to conveniently turn them off simultaneously with just one switch
4. Maximizing natural light during daytime and keeping appliances well maintained to ensure optimal performance.

For more helpful tips, customers may visit Meralco’s website at www.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco.