Meralco cuts electricity rate anew

Manila Electric Co. (Meralco) is implementing another rate cut for the second consecutive month in August.

It is reducing its rate by P0.2087 to P9.545 per kilowatt-hour (kWh), which will translate to a P42 reduction in the August bill of a typical household that consumes 200 kWh a month.

The recent adjustments  brought down Meralco rates by P0.9154 per kWh over the past two months and by P0.2315 per kWh year-to-date.

For the August billing, generation charge declined by P0.1944 to P6.5182 per kWh due to lower collection from Power Supply Agreements (PSA). PSA charges decreased by P0.4273 per kWh this month because it “no longer included recovery of deferred generation costs for the April bill.”

Prices in the Wholesale Electricity Spot Market, which is the marketplace for trading electricity as a commodity, were up P0.0433 per kWh amid tight supply conditions in the Luzon grid.

Charges by independent power producers climbed by P0.4213 per kWh given the rising international fuel prices.

The refund of P48.3 billion to Meralco customers ordered earlier by the Energy Regulatory Commission also helped keep electricity bills from increasing.