Manila Electric Co., the country’s largest power distributor, said Monday power rates in January will be reduced, offering some relief to residential customers amid ongoing economic challenges.
The overall power rate for a typical household decreased by P0.2189 per kilowatt-hour (kWh), bringing the rate down to P11.7428 from the previous month’s P11.9617 per kWh, Meralco said.
For households with a consumption of 200 kWh, the rate reduction translates to a savings of approximately P44 on their monthly electricity bill.
The decrease is largely driven by a significant drop in the generation charge, which fell by P0.1313 per kWh to P6.8358 per kWh.
Lower prices in the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs) contributed to the decline. WESM charges dropped by P0.8840 per kWh due to an improved supply situation in the Luzon Grid, where average peak demand decreased by 471 MW. Additionally, IPP charges fell by P0.1593 per kWh, aided by a stronger peso, lower fuel costs, and higher dispatch from the First Gas-Sta. Rita power plant.
While these reductions were partially offset by a P0.5638 per kWh increase in charges from Power Supply Agreements (PSAs), the overall impact on consumers is positive. PSAs, which account for 36 percent of Meralco’s energy requirements, saw a higher cost due to lower plant dispatch, but this was outweighed by other reductions.
Transmission and other charges also saw a slight decline of P0.0876 per kWh, adding to the overall decrease in the monthly bill. Meralco’s distribution charges, however, have remained unchanged since an earlier reduction in August 2022.
This rate adjustment marks another step in Meralco’s ongoing efforts to manage the impact of volatile global energy markets on local consumers.
