Metro Manila, Philippines – The Manila Electric Company (Meralco) will be reducing its power rates by around P0.36 per kilowatt-hour (kWh) in December due to lower transmission and generation charges.
Meralco announced the downward adjustment on Tuesday, Dec. 9, after implementing two consecutive hikes in the power rates.
This will bring down the overall rate for a typical household to P13.1145 per kWh from the previous month’s P13.4702 per kWh.
Meralco explained the cut translates to a decrease of P71 in December’s electricity bill for residential customers with a typical 200-kWh consumption.
The generation charge, which covers more than half of the Meralco bill, decreased by P0.1358 per kWh mainly due to lower charges from Independent Power Producers (IPPs) amid a reduction in natural gas prices, improved plant dispatch, and peso appreciation. IPP rates went down by P0.2127 per kWh.
However, charges from Power Supply Agreements and the Wholesale Electricity Spot Market — which were also part of the generation charge — went up by P0.0706 and P0.8086 per kWh, respectively.
“This month’s transmission charge dropped by P0.1462 per kWh for residential customers due to lower ancillary service charges from the Reserve Market incurred by the National Grid Corporation of the Philippines (NGCP),” the power distributor explained.
“Taxes and other charges similarly registered a P0.0737 per kWh net reduction,” it also said.
Meralco serves customers in Metro Manila, as well as areas in Calabarzon, Bulacan, and Pampanga.
