Electricity rates in Metro Manila are expected to fall in October and present a respite for consumers after three consecutive months of increases.
The distributor Manila Electric Co. (Meralco) announced a reduction of P0.3587 per kilowatt hour (kWh) in the cost of power, lowering the overall rate to P11.4295 per kWh. The adjustment translates to a P72 decrease in the monthly bills of residential customers consuming 200 kWh.
The decline is attributed to a P0.3059 per kWh drop in generation charges, itsel driven by lower rates at the Wholesale Electricity Spot Market (WESM) following the completion of deferred cost collection. But cost adjustments from independent power producers (IPPs) and power supply agreements (PSAs) partially offset the decrease.
In contrast, the Department of Energy forecast a significant rise in retail fuel prices expected to increase by P2.40 to P2.60 per liter of gasoline and kerosene, and P2.50 to P2.70 per liter for diesel. The surge is attributed to escalating crude oil prices amid geopolitical tensions in the Middle East, as well as regional supply constraints due to refinery maintenance and outages.
