MANILA, Philippines - Electricity bills this month could reflect lower rates on the back of robust supply from power generators and less exposure to the electricity spot market during the supply month, a Manila Electric Co. (Meralco) official said yesterday.
“Pressure for rates to go up is minimized,” Meralco spokesperson Joe Zaldarriaga said during the media visit to the company’s upgraded System Control Center.
Based on initial information, the Meralco official said there are no pressing factors for rates to go up and “rates could possibly be lower this September.”
This is because of the higher dispatch level from power generators that led to less exposure to the Wholesale Electricity Spot Market (WESM), the country’s trading floor for electricity.
“There was higher plant dispatch during the August supply month and at the same time, we saw less exposure from the spot market,” Zaldarriaga said.
The Meralco official, however, clarified the expectation of lower rates is just a projection based on initial data.
“We will get a better view when we get our invoices from suppliers by the first few days of next week and then we will see actual picture,” Zaldarriaga said.
For the month of August, Meralco customers saw a 26-centavo per kilowatt-hour (kwh) reduction in their electricity bills due to a drop in generation charge, which accounts for about 60 percent of total electricity cost.
As a result, August bills went down by P52.56 for a typical household consuming 200 kwh, P78.83 for those consuming 300 kwh, P105.11 for 400 kwh and P131.39 for 500 kwh.
The reduction in August bills is the fourth consecutive month electricity rates have gone down and the sixth time for this year.
Meralco, the country’s largest power distributor, covers 5.68 million customers in Metro Manila, Bulacan, Cavite and Rizal, as well as in certain areas in the provinces of Batangas, Laguna, Pampanga and Quezon.