Meralco cuts power rates anew in August

MANILA, Philippines — Manila Electric Co. (Meralco) announced a fresh round of rate cuts in August, a reprieve for its customers tightening their spending priorities as living costs nationwide soar. 

In a statement on Monday, the Pangilinan-led power distributor said the reduction of P0.2087 this month to P9.5458 per kWh is equivalent to a P42 savings for households consuming 200 kWh. 

The prices of consumer goods and services keep moving up amid a fragile domestic economic recovery hampered by pricey fuel, supply chain disruptions and a weak peso. 

The rate cuts totalled a combined P0.9154 per kWh in the past two months, according to Meralco. 

Pushing down power rates this month were lower generation costs due to decreasing charges from power supply agreements. This was due to the exclusion of recovery of deferred costs for the April power bill and a surplus of energy generated from these agreements.

Meralco said this offset hikes from independent power producers, which shoulder expensive fuel prices, and the wholesale electricity spot market as supply conditions remain tight. 

Likewise, an Energy Regulatory Commission-mandated refund of P48.3 billion kept power bills from inching up further this month. Another ERC decision compelled Meralco to cut its distribution charge starting August, equivalent to P0.0360 per kWh for households. 

Transmission charges crept up, while taxes and other charges inched down in August. 

Meralco cannot collect the Universal Charge-Environmental Charge, which remains in limbo after the ERC’s suspension.