The Manila Electric Co., the largest power distributor in the country, on Friday reported a reduction in electricity rates for October, cutting electricity rates by P0.3587 per kiloWatt-hour due to lower spot market prices and improved power supply situation in Luzon.
This adjustment brings the overall rate for a typical household down to P11.4295 per kWh, down from P11.7882 per kWh in September.
Residential customers consuming 200 kWh will see an estimated decrease of around P72 in their total electricity bills this month, providing much-needed relief as the holiday season approaches.
The decrease in October is primarily attributed to a P0.3059 per kWh reduction in the generation charge, stemming from lower costs in the Wholesale Electricity Spot Market. WESM charges decreased by P5.1001 per kWh after the completion of the deferred costs collection for May 2024 as mandated by the Energy Regulatory Commission.
The Luzon grid’s improved supply situation, with average demand and capacity outages declining by 544 MW and 519 MW, respectively, further supported this reduction.
Although costs from Independent Power Producers rose by P1.8556 per kWh due to higher Malampaya fuel prices, the overall impact of WESM’s significant decline outweighed these increases. WESM, IPPs, and Power Supply Agreements (PSAs) accounted for 24 percent, 26 percent, and 50 percent of Meralco’s total energy requirement, respectively.
Transmission charges also saw a decrease of P0.0383 per kWh due to lower ancillary service costs, and taxes and other charges fell by P0.0145 per kWh. Meralco’s distribution charge remains unchanged from August 2022.
In light of recent fraudulent activities, Meralco urges customers to transact only with authorized personnel and to ensure that all transactions come with an official receipt. Customers should only visit Meralco’s business centers or authorized payment channels.
Furthermore, Meralco reminds the public to adhere to electrical safety guidelines, avoiding practices like “octopus connections” that can lead to overheating and fires. Proper handling of electrical cords is crucial to preventing hazards in homes.
This month’s rate reduction not only supports household budgets but also highlights Meralco’s commitment to providing reliable and affordable electricity to its customers.
