Meralco trims May power rates despite oil crisis
Power distributor Manila Electric Co. (Meralco) will implement a small rate cut this May despite concerns about a significant hike in electricity rates because of the continuing oil crisis sparked by the Middle East war.
Meralco, the biggest power distributor in the Philippines, said there would be a reduction of P0.0151 per kilowatt hour (kWh) for this month’s billing, bringing the overall rate to P14.3345 from P14.3496 per kWh in April.
This means that households consuming 200 kWh per month could see a reduction of P3 in their electricity bill this May.
Proactive efforts
The company attributed the slight downward adjustment to a higher refund rate, the implementation of value-added tax exemption on indigenous natural gas, the suspension of green energy auction allowance and lower transmission charge.
“Despite initial indications of an increase, Meralco power rates this May had a modest reduction. This was achieved through the proactive efforts led by the Energy Regulatory Commission to cushion the impact of potentially high rates as a result of the geopolitical tensions that ultimately affect energy prices,” Meralco vice president and head of corporate communications Joe Zaldarriaga said.
“While our customers stand to benefit from relatively stable rates this May, we would like to advise our customers that the bills that they will receive may still go up depending on their actual consumption, which usually increases during the summer months,” he added.
Meanwhile, the company said the generation charge for the month increased to P8.7942 per kWh from P8.3864 per kWh. It noted a hefty P7.7239 per kWh hike in charges from the Wholesale Electricity Spot Market, particularly the line rental component, or the system loss charge for the transmission system.
To soften the impact, regulators gave the green light for Meralco to reflect the line rental caps under its power supply agreements. Any excess beyond the cap would be shouldered by generation companies.
The group’s distribution charge, on the other hand, remained unchanged since August 2022.
“While overall electricity rates have gone down, the dry season is typically marked by higher consumption, especially from cooling appliances, which can still drive bills upward. By being more mindful of their power consumption and observing energy efficiency, customers can take better control of their electricity bills,” Zaldarriaga said.
Meralco delivers electricity to over 8.2 million consumers in Metro Manila and nearby provinces.
