By Anna Leah Gonzales | Philippine News Agency
The Manila Electric Company (Meralco) said Tuesday electricity rates in its franchise areas declined by P0.7499 per kilowatt hour (kWh) this May.
In a statement Tuesday, Meralco said the reduction brings the overall rate for a typical household to P12.2628 from P13.0127 per kWh in April.
“For residential customers consuming 200 kWh, they will see a decrease of around P150 in their total electricity bill this month. The rate reduction is due to lower generation and transmission charges,” Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga said.
According to Meralco, the lower rates for this month were due to the decline in generation charges, transmission charges, and other charges.
The generation charge went down by P0.3144 per kWh to P7.4651 per kWh, primarily due to lower charges from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs).
Meralco said Wholesale Electricity Spot Market (WESM) charges fell by P1.1424 per kWh as a result of the improved supply situation in the Luzon Grid, while Independent Power Producers (IPP) charges also went down by P0.9555 per kWh due to higher average IPP dispatch and the peso appreciation.
The transmission charge for residential customers was also reduced by P0.2970 per kWh.
“Ancillary Service charges from the Reserve Market and the National Grid Corp. of the Philippines’ (NGCP) Ancillary Service Procurement Agreements (ASPAs) both registered reductions in the April supply month,” Meralco said.
“In addition, the transmission charge this May no longer includes Energy Regulatory Commission (ERC)-approved adjustments related to NGCP’s Reserve Market transactions for February and March 2024, following the completion of collection last month.”
Other charges, including taxes, similarly registered a net decrease of P0.1385 per kWh.
Midterm elections
Meralco said that electricity service in more than 3,000 polling and canvassing centers and other election sites during the May 12 elections was generally stable.
It said there were no major service disruptions reported.
“Overall, the isolated and minor electricity service concerns were immediately resolved by our crews and did not cause any major delay in the voting process within our franchise area,” Zaldarriaga said.
“Meralco will remain on full alert and on standby 24/7 to respond to possible concerns until the winners of the midterm elections have been proclaimed.”
Meralco noted, however, that as the dry season persists, customers are advised to continue practicing energy efficiency to better manage their consumption.
