Meralco cuts August power rates by 29 centavos per kWh

MANILA  -Easing demand amid the rainy season and lower spot market prices once again pulled down power distributor Manila Electric Co.’s (Meralco) electricity rate in the August billing period by P0.2908 per kilowatt-hour (kWh), bringing a typical household’s overall electricity rate to P10.8991 per kWh from P11.1899 per kWh in July.

This translates to a decline of P58 in the total bill of residential customers consuming 200 kWh a month.

The cut in the August electricity rate marks the second consecutive month of declines as the country experienced lower temperatures, thus lowering overall demand.

Combined reduction over the past two months now stands at P1.0121 per kWh, according to Meralco.

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 P0.2137 per kWh, bringing the total charge to P6.3929 per kWh this month from P6.6066 per kWh in July.

According to Meralco, this was on the back of  lower spot market prices, which went down by P1.2873 per kWh, owing to a 200-megawatt decrease in demand in the power-hungry Luzon grid.

The company also pointed out that the quarterly repricing of the Malampaya gas field reflected lower crude prices over the past six months.

Prices in the gas field in offshore northwest Palawan is influenced by fuel prices in the global market, and the appreciation of the Philippine currency’s value.

While charges from independent power producers slightly increased by P0.0853 per kWh, this was offset by the P0.1688-per-kWh decline in power supply agreement charges.

Transmission and other charges, including taxes and subsidies, had a net reduction of P0.0771 per kWh, Meralco said.

Last month, the power distributor slashed its electricity rate by P0.7213 per kWh after as demand declined, triggering lower generation charges.