Meralco cuts rates by 16¢

MANILA, Philippines - The Manila Electric Co. (Meralco) announced yesterday a cut of 16 centavos per kilowatt-hour in electricity rates for this month, to P4.10 per kwh.

In a press statement, Meralco vice president for utility economics Ivanna de la Peña said the lower rates of the National Power Corp. (Napocor) as well as the higher dispatch from independent power producers enabled Meralco to reduce charges.

De la Peña said Wholesale Electricity Spot Market (WESM) prices have also remained stable.

Meralco’s generation charge has been on a downtrend since May this year, and the P4.10 per kwh rate for this month is considered the lowest since October 2004.

The basic generation rate hike of Napocor in Luzon of P1.23 per kwh was first reflected in the bills of Meralco’s customers in November 2004.

Meralco said savings from lower cost of power purchase are given back to its 4.63 million customers in Metro Manila and nearby provinces in the form of lower electricity bills.

“The cost of generation is a pass-through charge,” it added.

However, consumers should brace for possible increases in the coming months after Meralco and Napocor filed separate petitions for rate increases before the Energy Regulatory Commission (ERC).

Meralco earlier petitioned for a P0.03 per kwh hike to cover payment of its use of the country’s power grid to deliver electricity to franchise areas.

Napocor also filed for an increase of about P1.51 per kwh for Luzon to recover what it called the high cost of producing electricity.

The government-owned power company still has a pending application with the ERC for a P0.17 per kwh hike in Luzon.