Meralco rates dip for 2nd straight month

More than 8 million consumers of Manila Electric Co. (Meralco) can expect a slight reduction in their electricity bills this September, as the utility giant trimmed the rate by P0.0409 per kilowatt-hour (kWh).

The overall rate for a typical household now stands at P14.7424 per kWh, down from P14.7833 per kWh a month ago.

Joe Zaldarriaga, Meralco vice president and head of corporate communications, said the dip in September rates would translate to a small cut of about P8 in the total electricity bill of residential customers consuming 200 kWh.

“This follows a rate decrease Meralco implemented last month, and we hope that this will somehow provide relief to our customers,” Zaldarriaga said in a statement on Friday.

The rate decline was attributed to the decrease in ancillary service charges collected by the National Grid Corp. of the Philippines, coupled with lower taxes.

Meralco said ancillary service charges, or the cost of power sourced from the reserve market and generators with deals with the grid operator, dropped by P0.3344 per kWh.

Taxes and other charges likewise fell by P0.1657 per kWh.

These reductions were enough to offset the P0.4232 per kWh hike in the generation charge, the largest portion of consumers’ bill, as this covers the electricity bought from suppliers.

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The increase in generation charge was caused by the weakening of the local currency as well as higher fuel costs, still due to the attacks in the Middle East.

Meralco also said its customers are getting some relief from two simultaneous refunds, equivalent to a total of P1.0139 per kWh for residential customers.

Its distribution charge, on the other hand, remained unchanged since August 2022.

Meralco delivers electricity to over 8.3 million consumers in Metro Manila and nearby provinces.