WATCH: Meralco power rates down this February

MANILA, Philippines — The Manila Electric Company (Meralco) announced a downward adjustment of power rates as the overall rate for a typical household decreased by P0.0704 per kWh, from last month’s P8.7497 per kWh to P8.6793 per kWh this February.

This is equivalent to a decrease of around P14 in the total bill of residential customers consuming 200 kWh. 

This month’s overall rate is also P0.1830 per kWh lower than February 2020’s rate of P8.8623 per kWh. The rate still includes the Energy Regulatory Commission (ERC)-approved adjustments for Meralco’s pass-through over/under-recoveries for the period January 2017 to December 2019.

In an Order released in December 2020, ERC directed Meralco to refund over-recoveries in transmission and other charges over a period of approximately three months until fully refunded and to collect an under-recovery in the generation rate for approximately twenty-four months until fully collected.

Meralco implemented the ERC-approved adjustments beginning in the January 2021 billing. The initial impact to residential customers is a net refund of around P0.1150 per kWh. 

Lower generation charge 

February 2021 generation charge is P4.4152 per kWh, P0.0422 lower than January’s generation charge of P4.4574 per kWh. This month’s generation charge is also lower than last year’s rate of P4.5090 per kWh. 

The reduction in generation charge this month is due to lower fixed charges from the Power Supply Agreements (PSA).

Meanwhile, Independent Power Producers (IPP) rates increased by P0.2103 per kWh due to lower average plant dispatch, higher Malampaya natural gas prices due to the quarterly repricing and peso depreciation.

Wholesale Electricity Spot Market (WESM) rates also increased by P0.9577 per kWh due to higher average plant capacity on outage in the Luzon grid. 

PSAs, IPPs and WESM provided 53.4%, 39.5% and 7.1% of Meralco’s energy requirements, respectively. 

Movements in other charges 

Transmission charge for residential customers also registered a reduction of P0.0128 per kWh due to lower Ancillary Service charges while taxes and other charges also registered a net decrease of P0.0154 per kWh. 

Meanwhile, collection of the Universal Charge-Environmental Charge amounting to P0.0025 per kWh remains suspended, as directed by the ERC. 

Meralco’s distribution, supply and metering charges, meanwhile, have remained unchanged for 67 months, after these registered reductions in July 2015. The company 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 Universal Charges and the FIT-All are remitted to the government. 

Service amid GCQ

Customers may visit their nearest Meralco Business Center, which will continue to open its doors during the general community quarantine (GCQ), and accept service applications, payments and other transactions. 

Strict safety measures continue to be implemented, like the “No Mask, No Entry” rule, Social Distancing and Temperature Check. Frontliners are available and ready but strictly follow Social Distancing guidelines.

Visitors can rest assured that these frontliners have passed the rapid COVID-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in the Meralco branches to protect both the customer and the frontliner. 

For maximum safety and convenience, Meralco encourages customers to use Meralco Online to transact from the safety of their homes. Multiple options for transactions have also been offered by the distribution utility, including the Meralco Mobile App, Meralco Online, and the Meralco authorized payment channels.

For more information and concerns, visit their website or check out their social media accounts on Twitter and Facebook. You may also call the hotline at 16211.

DISCLAIMER: This is a Meralco press release.