Meralco sees lower power rates next month

MANILA, Philippines - The Manila Electric Co. (Meralco) sees electricity rates going down further next month on lower generation costs charged by independent power producers (IPPs).

Meralco said the IPP rates have dropped by 12 centavos per kilowatt-hour (kWh) on average with Quezon Power Philippines Ltd. (QPPL) registering the biggest reduction at 26 centavos per kWh.

Two other IPPs, Sta. Rita and San Lorenzo power plants, also slashed their rates by an average nine centavos and 6.5 centavos per kWh, respectively.

The reduction in IPP rates is largely due to higher capacity.

For September, the utilized capacity of QPPL, Sta. Rita and San Lorenzo reached 96.7 percent, 92.29 percent and 96 percent, respectively.

Meralco said the rates of the National Power Corp. are also expected to decline due to the reduction in its Fuel and Purchased Power Cost Adjustment and Foreign Exchange Adjustment rates for August as ordered by the Energy Regulatory Commission.

The generation charge comprises about 60 percent of the average monthly power bill. This charge goes to Meralco’s power suppliers and not to Meralco.

Meralco has over four million customers in Metro Manila and nearby provinces.