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Electricity rate decreases this December

01:40 PM December 12, 2017

Meralco announced a decrease in electricity rates for December 2017, amounting to PhP0.3785 per kWh for a typical household, thereby bringing down the overall rate from last month’s PhP9.6272 per kWh to PhP9.2487 per kWh. The rate decrease this month amounts to around PhP76 reduction in the total bill of a typical residential customer consuming 200kWh.

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The lower December rate is mainly due to a P0.3035 per kWh reduction in the generation charge.

Stronger peso and lower WESM charges bring down the generation charge
The generation charge decreased from PhP4.9080 per kWh in November to PhP4.6045 per kWh this December primarily due to the peso’s appreciation and lower Wholesale Electricity Spot Market (WESM) charges.
Despite a slight increase in the demand for power in Luzon in November, charges from the WESM decreased by PhP0.4658 per kWh. The power supply situation improved from October, when the grid experienced three instances of Yellow Alerts. The share of WESM purchases to Meralco’s total requirement this month was 12%.

Charges from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) also registered decreases of PhP0.2191 per kWh and PhP0.3244 per kWh, respectively, mainly due to the strengthening of the peso against the US dollar. The peso-dollar exchange rate affects around 97% of IPP and 60% of PSA charges. IPPs and PSAs each provided 44% of Meralco’s total requirement.

Other charges add to further decrease
Transmission charge of residential customers decreased by PhP0.0186 per kWh due to lower transmission wheeling and ancillary charges. Consequently, taxes and other charges also went down by PhP0.0564 per kWh this month.

Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 29 months, after these registered reductions in July 2015. Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the FIT-All are collected by government.

Meralco provides energy efficiency tips for customers
This holiday season, Meralco once again encouraged its customers to continue practicing energy efficiency initiatives to help manage their electricity consumption. These include everyday household tips that may help save energy. Simple tips such as unplugging appliances and Christmas lights when not in use to avoid “phantom load.” Using the aircon at mid-setting or at 25 degrees Celsius for maximum efficiency. Using a power board or strip which can supply power to several appliances at once and allows a user to conveniently turn them off simultaneously using just one switch. Maximizing natural light during daytime and keeping appliances well maintained to ensure optimal performance. For more helpful tips, customers may visit its website at www.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco.

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