Meralco cuts July power rate by P0.7213/kWh

MANILA  -Low generation charge once again pulled down Manila Electric Co.’s (Meralco) electricity rate in the July billing period by P0.7213 per kilowatt-hour (kWh), bringing a typical household’s overall electricity rate to P11.1899 per kWh from P11.9112 per kWh in June.

Residential customers consuming 200 kWh a month can expect a decline of around P144 in their total bill, according to Meralco.

This month’s rate decline ends a two-month streak of rate hikes due to high demand in the dry season and the expiration of a series of distribution-based refunds.

Generation charge, or the cost of power purchased from suppliers that accounts for more than 50 percent of a customer’s total monthly bill, dropped by P0.6436 per kWh, bringing the total charge to P6.6066 per kWh this month from P7.2502 per kWh in June.

According to Meralco, this was on the back of lower spot market prices, which went down by P2.6597 per kWh thanks to declining demand amid the rainy season.

Charges from power supply agreements and independent power producers also went down by P0.3915 and P0.4658 per kWh, respectively, due to lower coal prices.

Transmission and other charges, including taxes and subsidies, had a net reduction of P0.0777 per kWh, Meralco said.

Last month, the power distributor increased its electricity rate by P0.4183 after a distribution-related refund ended.

The refund, equivalent to P0.8656 per kWh or P173.12 for a household consuming 200 kWh a month, had tempered hikes in rates earlier this year.