Meralco rates down on lower generation charges

The Manila Electric Company (Meralco) announced on Wednesday that it will cut power rates for August. In a statement, Meralco said electricity rates this month will be lower by PHP0.2908 per kilowatt hour (kWh) to PHP10.8991 per kWh from the July rate of PHP11.1899 per kWh. 'For residential customers consuming 200 kWh, the adjustment is equivalent to a decrease of around PHP58 in their total electricity bill. With the latest adjustment, the combined reduction over the past two months now stands at PHP1.0121 per kWh,' Meralco said. Lower generation has pulled down the electricity rates since last month. 'The generation charge registered its third consecutive reduction this month, as it went down by PHP0.2137 to PHP6.3929 per kWh from PHP6.6066 per kWh in July,' Meralco said. Wholesale Electricity Spot Market (WESM) rates dropped by PHP1.2873 per kWh due to lower demand in Luzon amid the rainy season. With the lower rates at the WESM, Meralco increased its electricity sourcing from the spot market to 17 percent. Prices from power supply agreements (PSAs), which accounted for 47 percent of Meralco power supply, also declined by PHP0.0853 per kWh because of lower fuel prices and stronger local currency, as 26 percent of PSA charges are dollar-denominated. However, lower charges from WESM and PSAs were offset by higher rates from independent power producers (IPPs) which increased by PHP0.0853 per kWh. IPPs shared 36 percent of Meralco's supply for the period. 'Transmission and other charges, which include taxes and subsidies, also registered a net reduction of PHP0.0771,' it added. Meanwhile, Meralco reminded qualified customers for the lifeline rate program, particularly the beneficiaries of Pantawid Pamilyang Pilipino Program (4Ps), to register for the program and get discounts on their electricity bills. Under Republic Act No. 11552, electricity subsidies are provided to low-income customers consuming below 100 kilowatt-hours of electricity a month, who cannot afford to pay their bills at full cost. The electricity rate discounts to 4P beneficiaries extend for 50 years

Source: Philippines News Agency