Meralco power rates down by 11 centavos in June
The Manila Electric Co. (Meralco) has slashed electricity rates for the month of June by nearly 11 centavos per kilowatt hour (kWh), marking the second straight month of rate cuts.
In a statement on Wednesday, the power distributor announced that the overall rate for a typical household will be P12.1552, down from P12.2628 per kWh in May.
“Our customers will continue to benefit from lower power rates this month, mainly due to lower generation charge,” Meralco vice president and head of corporate communications Joe Zaldarriaga said.
P22 less
He noted that a typical household consuming 200 kWh could expect a reduction of around P22 in their June power bill.
According to Meralco, the generation charge went down by P0.1099 per kWh to P7.3552 per kWh due to lower charges from power supply agreements, independent power producers (IPPs), and the Wholesale Electricity Spot Market.
Transmission charges, however, slightly inched up by P0.0214 per kWh due to higher ancillary service charges from the National Grid Corporation of the Philippines (NGCP).
The distribution charge, on the other hand, has remained unchanged since August 2022.
In May, Meralco reduced its power rates by 75 centavos per kWh, bringing down the overall rate for a typical household to P12.2628 from P13.0127 per kWh in April. It attributed the decrease to lower charges from the spot market and IPPs.
The power distributor—which earns from distribution, supply and metering charges—covers Metro Manila, the nearby provinces of Bulacan, Cavite and Rizal, and select areas in Pampanga, Laguna, Batangas and Quezon.
In a separate briefing, the NGCP reported that the overall average transmission rates, which will reflect in the June billing, went up by 4.60 percent to P1.1482 per kWh from April’s P1.0978 per kWh.
Transmission rates account for about 10 percent of a household’s monthly electric bill.
The country’s grid operator said the upward adjustment was primarily driven by the 9.29-percent increase in ancillary services, or the cost of power sourced from the reserve market and generators with deals with the NGCP.
Transmission wheeling rates, or the costs being charged by the NGCP, fell by 0.27 percent to P0.4593 per kWh.
