Meralco: Power rates to drop P0.3587 per kWh this October

FILE PHOTO: Meralco customers may heave a sigh of relief as the power distributor announced lower electricity rates this October. Meralco says on Friday, October 11, 2024, that power rates will drop by P0.3587 per kilowatt-hour for the October billing period, bringing this month’s overall rate to P11.4295 per kWh from P11.7882 per kWh in September. INQUIRER FILES

Customers of Manila Electric Co. (Meralco) may heave a sigh of relief as the power distributor announced lower electricity rates this month.

Meralco said that power rates will drop by P0.3587 per kilowatt-hour for the October billing period, bringing this month’s overall rate to P11.4295 per kWh from P11.7882 per kWh in September.

This translates to a decrease of P72 for residential consumers with a monthly consumption of 200 kWh.

The distribution utility said the P0.3059 per kWh reduction in the generation charge caused the decline in the October rates, mainly due to lower costs from the Wholesale Electricity Spot Market (WESM).

READ: Meralco power rates up for third straight month

WESM rates dropped by P5.1001 per kWh after it completed collecting the deferred May 2024 costs ordered by the Energy Regulatory Commission (ERC) and the improved supply situation in the Luzon grid.

Lower WESM charges more than offset the rate increases from independent power producers and power supply agreements, rising by P1.8556 per kWh and P0.1128 per kWh, respectively.

Both the transmission charge dipped by P0.0383 per kWh as well as taxes and other charges by P0.0145 per kWh for the billing period.

Meanwhile, Meralco’s distribution charge remains unchanged after the P0.0360 per kWh decrease implemented in August 2022.