Ahead of the official announcement of electricity rate adjustments in October, the Manila Electric Company or Meralco on Tuesday signalled that electricity prices in its franchise area are likely to decline.
The anticipated decrease is attributed to lower cost of power from the Wholesale Electricity Spot Market (WESM), which has reported a drop in prices due to reduced power demand.
Joe Zaldarriaga, Meralco vice president and head of corporate communications, explained, “Initial indications suggest a potential decrease in the generation charge for the October billing cycle. This is mainly driven by lower WESM charges, influenced by diminished demand resulting from cooler temperatures during September. Additionally, the conclusion of the deferred WESM costs from May 2024 last month has also played a role.”
In September, Meralco raised its rates by P0.1543 per kilowatt-hour (kWh) due to higher ancillary service charges following the resumption of commercial operations in the reserve market on 5 August 2024.
The increase translates to approximately P31 more on the bill for a residential customer consuming 200 kWh per month, bringing the overall power rate to P11.7882 per kWh, up from P11.6339 per kWh.
