Power rates in Metro Manila are to retreat this month after a brief increase in March due to lower generation charges, according to the Manila Electric Co. (Meralco).
The P0.1180 per kilowatt hour (kWh) downward rate adjustment brings the overall power rate to P11.3168 from last month’s P11.4348 per kWh.
This translates to a decrease of around P24 in the total bill of residential customers consuming 200 kWh monthly.
Meralco said the generation charge retreated to P7.3295 this month from P7.3790 per kWh even with the collection of the first installment of deferred generation cost of around P0.20 per kWh under the April billing period.
The power distributor company explained the impact of the initial collection of the deferred installment was more than offset by lower costs from the Wholesale Electricity Spot Market (WESM) and its power supply agreements (PSAs) in the April billing period.
In March, Meralco coordinated with its suppliers and the Energy Regulatory Commission (ERC) to stagger the collection of a total of around P1.1 billion in generation costs to help cushion the impact of the rate increase on consumers.
WESM charges were lower by P1.0462 per kWh due to improved supply in the Luzon grid as power plant outages decreased to around 235 megawatts. Also, charges from PSAs also retreated by P0.0741 per kWh due to a weaker peso.
Independent power producer (IPP) charges also increased by P0.6710 per kWh following the collection of the first installment of deferred generation costs and lower plant dispatch.
All other charges, including transmission charge, taxes and subsidies, also posted a net cut of P0.0685 per kWh even as the collection of the feed-in tariff allowance had been deferred to the August billing period.
Meralco reiterated that it only earns from the distribution, supply and metering charges which was down P0.0360 per kWh in August 2022.
The company said its power requirement during the month was sourced 32 percent from WESM, 27 percent from IPPs and 41 percent from PSAs.
Earlier this month, Meralco energized the cold storage facility of Atkins Import and Export Resources Inc. in Naic, Cavite.
The facility is considered the largest in South Luzon using a 976.8 kilowatt solar panel system installed by Spectrum, a Meralco subsidiary.
The solar project is expected to generate 1,362,100 kWh of clean energy every year and result in around P9.5 million as savings in energy costs for Atkins, reduce its carbon footprint by 970 tons equivalent to over 44,500 trees planted.
