MANILA, Philippines — Customers of Manila Electric Co. (Meralco) can expect lower power bills in April, thanks to a decrease in generation charge.
In a statement on Tuesday, the largest power distributor in the country said its overall rate in April went down by P0.1180 per kWh, translating to a decrease of around P24 in the total bill of a typical household consuming 200 kWh.
Explaining the downward adjustment, Meralco said it paid less for electricity it bought from suppliers.
That reduction was enough to offset the collection of the first installment of deferred generation costs this month. To recall, Meralco earlier coordinated with its suppliers and the Energy Regulatory Commission (ERC) to stagger the collection of around P1.1 billion in March generation costs to cushion the impact of the rate increase to its customers.
The company said the collection of deferred costs was “more than offset” by lower energy prices from the Wholesale Electricity Spot Market (WESM) and Meralco’s Power Supply Agreements (PSAs)
WESM charges were lower by P1.0462 per kWh due to improved supply situation in the Luzon grid, Meralco said. Charges from PSAs likewise went down by P0.0741 per kWh on the back of a stronger peso and higher share of excess energy deliveries of some suppliers.
Meralco sourced 73% of its energy requirement for April from WESM and PSAs.
Meanwhile, charges from Independent Power Producers (IPPs), which covered 27% of Meralco’s total energy needs, increased by P0.6710 per kWh following the collection of the first installment of deferred generation costs.
As it is, a reduction in power rates is a good news for Filipinos who have been hit by painfully high inflation.
That said, Meralco announced the ERC has formally endorsed the official list of beneficiaries of the lifeline discount program, which targets poor families.
Meralco also reminded the public to continue practicing energy efficiency for better management of their consumption, which historically rises by 10% to 40% during the dry season amid higher demand for air-conditioning.