Meralco rates down in January

MANILA, Philippines — Power utility giant Manila Electric Co. (Meralco) is lowering its power rate by P0.2189 per kilowatt-hour this month, bringing the overall rate to P11.7428 kWh from December’s P11.9617 per kWh.

This adjustment, which ends a two-month rate hike, translates to a reduction of around P44 in the total electricity bill for typical residential customers consuming 200 kWh.

At a press conference yesterday, Meralco spokesman Joe Zaldarriaga said the downward adjustment was primarily due to the reduction in generation costs, along with a slight drop in transmission and other charges.

The generation charge, or the cost of power procured from independent power producers (IPPs), the wholesale electricity spot market (WESM) and the power supply agreements (PSAs), went down by P0.1313 per kWh this month.

Zaldarriaga said WESM rates decreased due to an improved supply situation in the Luzon grid, while IPP charges declined as the peso appreciation affected 97 percent of dollar-denominated costs.

These reductions offset the increase in PSA charges, which was caused by lower plant dispatch.

For the period, Meralco sourced 34 percent, 30 percent and 36 percent of its energy requirements from WESM, IPPs and PSAs, respectively.

Also contributing to the lower rate in January was the P0.0876 per kWh net reduction in transmission and other charges.

The transmission charge, which covers the cost of transporting electricity from power plants to distribution systems, is paid to the grid operator, while taxes and other charges are all remitted to the government.

Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh decrease implemented in August 2022.