Power rates go down in October

Two straight months of electricity rate decrease
11:36 AM October 11, 2018

ELECTRICITY RATES DOWN IN OCTOBER. Meralco announced that electricity rates for a typical household went down this October by Php 0.0966 per kilowatthour (kWh), the second straight month of rate decrease. Residential customers consuming 200 kWh will experience a reduction of around Php 19 in their total electricity bills. Since April, power rates registered a net decrease of 57 centavos per kWh. Meralco Public Information Office Head Joe Zaldarriaga (in photo) explained that the overall rate decrease can be attributed to the downward movement in the generation charge, while Meralco’s distribution, supply, and metering charges have remained unchanged for 39 months. To further help households gain more savings by managing their electrical consumption, Meralco also advised the following energy efficiency tips – unplugging appliances when not in use to avoid “phantom load,” turning the aircon to 25°C mid-setting, maximizing natural light during daytime, and keeping appliances well maintained to ensure optimal performance.

The Manila Electric Company (MERALCO) announced today that after a reduction last September, overall electricity rates once again went down to P9.9766 per kWh this month from last month’s P10.0732 per kWh. The decrease of P0.0966 per kWh will mean a downward adjustment of around P19 in the total bill of a typical household consuming 200kWh.


Since April this year, electricity rates registered a net decrease of 57-centavos per kWh.

“We are pleased to announce that despite prices of other basic goods and commodities generally going up, Meralco customers can find some relief in the decrease of power rates these past two months, as this goes against the current trend that we see with other products,” said Meralco Spokesperson and Head of Public Information Office Joe Zaldarriaga.


Lower PSA charges bring down the generation charge

From PhP5.2719 per kWh last month, generation charge for October went down to PhP5.1908 per kWh, a decrease of PhP0.0811 per kWh.

The decrease in generation charge is mainly the result of PhP0.2790 per kWh reduction in charges of Power Supply Agreements (PSAs). Despite the weakening of the peso against the US dollar and the scheduled maintenance outage of Sual Unit 1 that started on August 31, the cost of power from PSAs went down due to higher dispatch of Masinloc and Ilijan plants. The share of PSA purchases to Meralco’s total requirement this month was 36%.

The decrease in PSA charges offset the P0.0414 per kWh increase in cost of power from Independent Power Producers (IPPs) as a result of continued Peso depreciation. About 96% of IPP costs are denominated in US dollars. The share of IPP purchases to Meralco’s total requirement this month was at 41%.

Cost of power from Wholesale Electricity Spot Market (WESM) slightly increased by P0.2981 per kWh due to lower availability of power plants in the Luzon grid. The share of WESM purchases to Meralco’s total requirement this month was 23%.

Other charges decrease except transmission charge

Transmission charge of residential customers increased by P0.0111 per kWh due to the increase in NGCP’s ancillary service charges. Meanwhile, taxes and other charges went down by PhP0.0266 per kWh this month.


Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 39 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 rate are remitted to the government.   

Meralco provides energy efficiency tips for customers

Meralco once again encourages its customers to still continue practicing energy efficiency initiatives to help manage their electricity consumption. These include everyday household tips that may help save energy, such as: (i) unplugging appliances when not in use to avoid “phantom load”, (ii) using the aircon at mid-setting or at 25 degrees Celsius for maximum efficiency, (iii) 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 with just one switch, and (iv) maximizing natural light during daytime and keeping appliances well maintained to ensure optimal performance. For more helpful tips, customers may visit Meralco’s website at or its social media accounts, twitter @meralco and facebook

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