Meralco cuts rates this month

October 08, 2018

THE Manila Electric Company (Meralco) will implement a power rate decrease of P0.966 per kiloWatt hour (kWH) this month.

Last September, overall electricity went down to P9.9766 per kWh.

In a statement issued by Meralco, for typical household consuming 200 kWh, this will mean a reduction of around P19 in the total bill.

Since April this year, electricity rates registered a net decrease of 57 centavos per kWh.

“We are pleased to announce that despite prices of other basic goods and commodities generally going up, Meralco customers can find some relief in the decrease of power rates these past two months, as this goes against the current trend that we see with other products,” said Meralco spokesperson and head of Public Information Office Joe Zaldarriaga.

Lower PSA charges bring down the generation charge from P.2719 per kWh last month, generation charge for October went down to P5.1908 per kWh, a decrease of P0.0811 per kWh.

The decrease in generation charge is mainly the result of P0.2790 per kWh reduction in charges of power supply agreements (PSAs). Despite the weakening of the peso against the US dollar and the scheduled maintenance outage of Sual Unit 1 that started on August 31, the cost of power from PSAs went down due to higher dispatch of Masinloc and Ilijan plants. The share of PSA purchases to Meralco’s total requirement this month was 36%.

Transmission charge of residential customers increased by P0.0111 per kWh due to the increase in NGCP’s ancillary service charges.

Meanwhile, taxes and other charges went down by P0.0266 per kWh this month.

Meralco’s distribution, supply and metering charges, meanwhile, have remained unchanged for 39 months, after these registered reductions in July 2015.

Meralco 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 FIT-All rate are remitted to the government.