Power rates down anew

MANILA, Philippines - Electricity rates have gone down for the fourth consecutive month in August, according to the Manila Electric Co. (Meralco).

This is on the back of lower fuel costs and lower demand dampening generation charge.

The reduction in this month’s billing is also the sixth time electricity rates have gone down this year.

Overall rates for residential customers this month will go down again by P0.26 per kilowatt-hour (kwh), Meralco said.

This translates to a P52.56 drop in bills for a household consuming 200 kwh.

Households using 300 kwh a month will see a P78.83 decline in their bills, and those consuming 400 kwh and 500 kwh will have a drop of P105.11 and P131.39.

The generation charge was the main contributor to the drop in the overall rates.

The generation charge – the biggest portion of the bill accounting for roughly 60 percent – decreased by P0.19 per kwh to P4.55 per kwh, the second lowest since October 2010.

“The generation charge reduction was largely driven by lower charges from power plants under the Independent Power Producers (IPPs) due to lower fuel costs resulting from the quarterly repricing of natural gas and lower condensate cost due to fewer gas restrictions requiring these plants to use the higher priced condensate,” Meralco said.