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Electricity rates went down this December.

The Manila Electric Company (Meralco) announced a decrease in electricity rates this month amounting to P0.3785 per kWh for a typical household.

This brings down the overall rate from last month's P9.6272 per kWh to P9.2487 per kWh. The rate decrease this December amounts to around a P76-reduction in the total bill of a typical residential customer consuming 200kWh.

The lower December rate is mainly due to a P0.3035 per kWh reduction in the generation charge.

The generation charge decreased from P4.9080 per kWh in November to P4.6045 per kWh this December primarily due to the peso's appreciation and lower Wholesale Electricity Spot Market (WESM) charges.

Despite a slight increase in the demand for power in Luzon in November, charges from the WESM decreased by P0.4658 per kWh. The power supply situation improved from October, when the grid experienced three instances of Yellow Alerts. The share of WESM purchases to Meralco's total requirement this month was 12 percent.

Charges from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) also registered decreases of P0.2191 per kWh and P0.3244 per kWh, respectively, mainly due to the strengthening of the peso against the US dollar. The peso-dollar exchange rate affects around 97 percent of IPP and 60 percent of PSA charges. IPPs and PSAs each provided 44 percent of Meralco's total requirement.

Transmission charge of residential customers decreased by P0.0186 per kWh due to lower transmission wheeling and ancillary charges. Consequently, taxes and other charges also went down by P0.0564 per kWh this month.

Meralco's distribution, supply, and metering charges, meanwhile, have remained unchanged for 29 months, after these registered reductions in July 2015.

Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the FIT-All are collected by government.


Meralco announced that electricity rates for a typical household went down this December by P0.38 per kilowatthour (kWh) for its residential customers. This translates to a reduction of around P76 in the electricity bill for households consuming 200 kWh. Meralco Public Information Office head Joe Zaldarriaga explained that the overall rate decrease was due to the downward movement in the generation charge. (MANILA BULLETIN)

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Title Annotation:National
Publication:Manila Bulletin
Date:Dec 21, 2017
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