Electricity rates go down again in November | Inquirer Business

Electricity rates go down again in November

03:35 PM November 10, 2016

Meralco TVC Slide1 (1)

Meralco announced that the rate for a typical household will go down this November by PhP0.0781 per kilowatthour (kWh), thereby bringing it down to PhP8.26 per kWh, the lowest since January 2010. This month’s overall rate is lower by PhP0.29 per kWh compared to November 2015’s PhP8.55 per kWh. This is also the fourth straight month of reduction in the overall residential rate.

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This month’s decrease translates to a reduction of around PhP16 in the electricity bill of a household with monthly consumption of 200 kWh. The reduction is mainly due to the downward movement in the generation charge, which is PhP0.0502 per kWh lower than last month’s PhP3.8938 per kWh.  At PhP3.8436 per kWh, the generation charge is around PhP0.24 per kWh lower compared to November 2015’s PhP4.08 per kWh.

The decrease resulted mainly from lower charges from the Wholesale Electricity Spot Market (WESM). This offsets increases in IPP and PSA costs brought about by higher coal and natural gas prices and low dispatch.

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There was also a decrease in the transmission charge by PhP0.0177 per kWh, mainly due to the reduction in the ancillary charge differential that NGCP began to collect from its Luzon customers in June. Taxes and other charges also decreased by a combined amount of around PhP0.0102 per kWh.

Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 16 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 National Grid Corporation of the Philippines (NGCP).

In this month’s Meralco Advisory, Meralco also features a Bright Idea perfect for the coming Christmas season celebrations, showing how using a videoke system (TV, mic and speakers) only costs less than Php 1.50 an hour. This is based on tests conducted by the Meralco Power Lab.

Watch the Meralco Advisory here:

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TAGS: electricity rates, lower electricity rate, Meralco
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