Lower electric rates this month

July 08, 2019

THE Manila Electric Company consumers can expect  lower electricity rate this July, for the third consecutive month.

“Overall electricity rates for a typical household consuming 200 kWh decreased to P9.9850 per kWh this July from P10.0918 per kWh in June,” Meralco said yesterday.

A typical household consuming 200 kWh will see a reduction of P21 from the total bill.

For households consuming more than that, the following reductions will take effect: 300 kWh  -- P32; 400 kWh -- P43;  and 500 kWh -- P53.

“The third straight month of lower electricity rates represents a total downward adjustment of around P0.57 per kWh since May 2019,” Meralco added.

From P5.4158 per kWh last month, generation charge for July went up to P5.4227 per kWh, a slight increase of P0.0069 per kWh.

The slight generation charge increase is primarily due to higher charges from the Wholesale Electricity Spot Market (WESM), but was mostly offset by the lower charges of Independent Power Producers (IPPs) and stable charges of Power Supply Agreements (PSAs).

On the other hand, cost of power from IPPs decreased by P0.2239 per kWh largely due to Peso appreciation.

About 97% of IPP charges are dollar-denominated. Cost of power from PSAs is stable with a slight increase of P0.0414 per kWh. IPPs and PSAs provided 41.4% and 50.5% of Meralco’s supply needs, respectively.

The Meralco stressed 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.