Meralco to cut power rates

AFP FILE PHOTO

MANILA, Philippines–Besides plunging fuel prices, consumers will enjoy slightly lower power rates in the franchise area of Manila Electric Co. (Meralco), which covers Metro Manila and surrounding provinces.

Meralco said overall rates would go down by 19 centavos per kilowatt-hour in December due to an improved power generation.

For a typical 200-kWh consumer, the lower power rates would mean a reduction of P38 in the electricity bill for this month.

Meralco attributed the decrease to a 17-centavo per kWh decline in the generation charge.

The reduction was mainly driven by lower Wholesale Electricity Spot Market (WESM) charges, which dropped due to the normal operations of the power plants during the November supply month.

The supply situation in Luzon improved especially since the 647-megawatt Unit 1 of the Sual power plant came back online after a monthlong maintenance from October to November, Meralco said.

In addition, WESM charges decreased due to the completion in October of adjustments from prior months, which included additional must-run unit compensation for Malaya and the secondary cap additional compensation for the supply months of May and June 2014.

These accounted for 9 centavos of the decrease in generation charge this month, Meralco said.

Transmission charges, on the other hand, increased by 1.7-centavos per kWh due to the higher ancillary service charges.