Meralco cuts charges in September

Metro Manila, Philippines - Major power distributor the Manila Electric Company (Meralco) has reduced rates this month by P0.1852 per kilowatt-hour (kWh) attributable to lower generation charge.

It said this brought down the overall rate for a typical household consumer to P13.0851 per kWh from P13.2703 in August, equivalent to P37 less for those consuming 200 kWh.

The company pointed to the decline in generation charge - or the cost of electricity from suppliers - by P0.2603 per kWh.

It said this was “more than enough” to offset higher rates from Wholesale Electricity Spot Market - a power trading platform - and adjusted contract price from two generating companies, namely, Sual Power, Inc. (SPI) and South Premiere Power Corporation (SPPC).

“The implementation of SPI and SPPC’s contract price adjustments follows the Supreme Court’s ruling that affirmed the right to invoke the ‘Change in Circumstance’ clause of their supply agreements and allowed the generation companies to collect price adjustments to reflect additional fuel costs,” Meralco said.

A "Change in Circumstance" is a provision in a contract that allows for adjustments due to a significant, unforeseen event.

“As a result, the Energy Regulatory Commission approved a total amount of P5.1 billion, to be collected over a period of six (6) months, starting this September. This is around P0.26 per kWh for this month,” it said.

Meralco raised rates in August and July.