Residential customers of Manila Electric Co. (Meralco) will enjoy lower rates for the second month in a row, this time by 52.6 centavos per kilowatt-hour, as the firm’s long-term suppliers and the spot market saw a decrease in electricity costs.
The decrease in the January rate means that a typical residential customer using 200 kwh would see a reduction of about P105 from the previous monthly bill.
Meralco’s overall rate went down to P8.7227 per kwh this month from P9.2487 per kwh in December. Since November, Meralco’s rate has gone down by a total of 90.45 centavos per kwh.
The latest rate decrease is mainly due to a 52.77-centavo-per-kwh decrease in the overall generation charge.
Meralco suppliers with which the distribution giant has long-term power supply agreements (PSAs) effected a 98.1-centavo-per-kwh decrease in rates.
This was attributed to lower capacity fees which, even then, would “return to normal levels” next month.
Also, generation charges seen at the wholesale electricity spot market (WESM) went down by P1.6943 per kwh as prices in the Luzon grid also went down due to lower demand.
Meralco sources 41 percent of its supply from PSA suppliers and 19 percent from the WESM.
Further, charges from independent power producers (IPPs) went down by 38.08 centavos per kwh as IPP power plants saw less action. Meralco gets 41 percent of its supply from IPPs.
Meralco added transmission charges went up 11.68 centavos per kwh, but taxes and other charges went down by 11.51 per kwh.
“Meralco’s distribution, supply and metering charges, meanwhile, have remained unchanged for 30 months after these registered reductions in July 2015,” the company said.