Meralco cuts December power rates by 36 centavos
Manila Electric Co. (Meralco) is bringing down its rates by P0.3557 per kilowatt-hour (kWh) in December due to lower generation and transmission charges.
In a press briefing on Tuesday, the power distributor said the adjustment brings the overall electricity rate for a typical household to P13.1145 per kWh this month, down from P13.4702 per kWh in November.
For customers consuming 200 kWh, this translates to a decrease of around P71 in their monthly bill.
“With the holiday season approaching, we hope this rate adjustment gives much-needed relief for our customers,” Meralco vice president and corporate communications head Joe Zaldarriaga said.
The power distributor said this month’s rollback was driven primarily by lower transmission and generation charges, which account for the bulk of consumer electricity bills.
Transmission charges declined by P0.1462 per kWh due to lower ancillary service costs from the reserve market of the National Grid Corp. of the Philippines.
On the other hand, the generation charge dropped by P0.1358 per kWh following reduced rates from independent power producers (IPPs).
Dollar-denominated
Meralco said that IPP charges fell by P0.2127 per kWh due to declining natural gas prices, better plant dispatch and the peso’s appreciation—an important factor as 99 percent of IPP costs are dollar-denominated.
However, increases were recorded in charges from power supply agreements (PSAs) and the Wholesale Electricity Spot Market (WESM).
PSA rates rose by P0.0706 per kWh, an uptick Meralco attributed to the scheduled maintenance shutdown of San Buenaventura Power Ltd. Co. from Oct. 27 to Nov. 25.
WESM charges likewise inched higher by P0.8086 per kWh due to smaller downward adjustments in spot market settlements despite lower demand in November.
For the period, IPPs supplied 21 percent, PSAs 73 percent, and WESM 6 percent of Meralco’s total energy requirement.
