Lower ancillary service charges and taxes pull down rates this September
Customers of Manila Electric Company (Meralco) are set to benefit from back-to-back rate reductions as the utility announced another decrease of P0.0409 per kWh in the electricity rate this September.
This brings down the overall rate for a typical household to P14.7424 this month from P14.7833 per kWh in August.
“For residential customers of Meralco who are consuming 200 kWh, this adjustment translates to a reduction of around P8 in the total electricity bill,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said. “This follows a rate decrease Meralco implemented last month, and we hope that this will somehow provide relief to our customers.”
Lower ancillary service charges and taxes offset increase in generation charge
This month’s overall rate reduction was mainly due to the decrease in ancillary service charges collected by the National Grid Corporation of the Philippines (NGCP) and lower taxes.
Ancillary service charges went down by P0.3344 per kWh due to lower charges from the Reserve Market.
Taxes and other charges, meanwhile, registered a net decrease of P0.1657 per kWh. This was largely driven by the completion of Malampaya gas facility’s maintenance shutdown that enabled the First Gas/PrimeCoreGen plants to fully utilize indigenous natural gas, which is exempt from value-added tax (VAT).
These reductions more than offset a P0.4232 per kWh increase in the generation charge. This was mainly due to the depreciation of the Peso and higher fuel costs amid the recent escalation of the Middle East conflict, which were then tempered by lower charges from the Wholesale Electricity Spot Market (WESM) as average demand in the Luzon grid went down by about 1,200 MW because of the impact of prevailing weather conditions.
For this period, Power Supply Agreements, First Gas/Prime CoreGen, and WESM accounted for around 71%, 24%, and 4%, respectively, of Meralco’s total supply requirements.
Meralco customers also continue to benefit from two simultaneous refunds–equivalent to a total of P1.0139 per kWh for residential customers–that are currently being implemented by Meralco.
Pass-through charges for generation, and transmission and ancillary service are paid by Meralco to the power suppliers and the NGCP, respectively; while taxes, universal charges, and other public policy charges are all remitted to the government and the relevant agencies. Meralco’s actual distribution charge, on the other hand, has not moved for a typical residential customer since August 2022.
Meralco mobilizes relief efforts in Habagat-hit areas, reminds customers to practice electrical safety
Following heavy rains and flooding brought by the Habagat, Meralco, through its corporate social development arm One Meralco Foundation (OMF), has brought relief to areas severely affected by the weather disturbance.
Since the start of August, OMF has brought aid to over 5,000 families in Metro Manila, Bulacan, Cavite, Rizal, Nueva Ecija, and Pampanga—and continues to sustain relief operations to help those in need.
Meralco also reminded its customers to continue practicing electrical safety especially during flooding, as rains continue to affect parts of the distribution utility’s franchise area.
• Stay away from downed power lines and electrical facilities especially those that may have been damaged or submerged in floodwater.
• Turn off the main power switch or circuit breaker. Make sure hands and feet are dry before touching any electrical equipment.
• Unplug all appliances and turn off permanently connected devices. Remove light bulbs if possible.
• Clean mud and debris from electrical equipment using rubber gloves and rubber-soled shoes.
• Ensure all electrical wires, outlets, and devices are completely dry before use.
• Have a licensed electrician inspect appliances and wiring systems before turning them back on. Never use flood-damaged electrical equipment.
Meralco also advised customers to keep all channels of communication open and ready, and charge mobile phones, laptops, radios, and other communication gadgets.
For inquiries and concerns, customers can reach out through the My Meralco app or through Meralco’s official social media accounts on Facebook (www.facebook.com/meralco) and X formerly Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211.
