Meralco customers to benefit from lower electricity rates this October

By TDT – 17 Oct 2024, 00:01

Meralco customers are expected to benefit from lower rates this month. Seen in photo are Meralco crews conducting maintenance works to ensure delivery of stable and reliable service to millions of Filipino consumers.

Customers of the Manila Electric Company (Meralco) will benefit from lower power rates this October after the distribution utility announced a decrease of P0.36/kilowatt-hour (kWh) that would bring down overall electricity rate for a typical household to P11.43/kWh.

Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga said customers consuming 200 kWh a month will see a reduction of P72 in their October bill. The bills of those with 300 kWh consumption will be lower by P108; while those with 400 kWh and 500 kWh consumption will get a P143 and P179 decreases, respectively.

This comes as a relief for consumers especially with the big-time increase in pump prices this week.

GOOD NEWS FOR CONSUMERS. Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga (right) together with Meralco Vice President and Head of Utility Economics Lawrence S. Fernandez (left) discuss the factors contributing to the decrease in the overall electricity rate for October 2024.

Zaldarriaga explained that the lower rates this month was primarily due to lower generation charge, which in turn was driven by lower costs from the Wholesale Electricity Spot Market (WESM).

WESM charges went down following last month’s conclusion of the collection of deferred May 2024 costs ordered by the Energy Regulatory Commission (ERC). The improved supply situation in the Luzon grid also contributed to the decrease in WESM charges.

Zaldarriaga further said that the significant decrease in WESM charges more than offset increases in charges from First Gas plants Sta. Rita and San Lorenzo following the ERC’s approval of higher pass-through Malampaya fuel prices starting this October 2024 under their new Gas Sale and Purchase Agreements (GSPAs) with the Malampaya consortium. The ERC also allowed the amortization of cost differentials between the old and new GSPAs covering the January 2024 to August 2024 supply months for over 12 months.

The transmission charge this month also went down by P0.0383 per kWh due to lower ancillary service charges. Taxes and other charges similarly decreased by P0.0145 per kWh.

Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) are all remitted to the government.

Zaldarriaga reiterated that Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer in August 2022.

Driving this month’s overall Meralco electricity rate decrease is the lower generation charge. Seen in the photo are the adjustments in the different Meralco electricity bill components.

Meralco customers are set to see lower electricity rates this October. Table shows the expected Meralco rate decrease impact on the bill of customers depending on the consumption.

Reminders to the public

“The monthly bills we pay are also affected by our actual consumption that’s why we remind our customers and the public to continue practicing energy efficiency measures,” Zaldarriaga said.

Some energy efficiency tips that customers can observe are:

• Unplug appliances when not in use

• Avoid overfilling the refrigerator to ensure proper circulation of the cool air inside

• Iron large batches of clothing at one time

• Utilize natural lighting when and where possible

• Optimize the temperature setting of the air conditioner to 25℃ instead of 18℃ and regularly clean the filter

In addition, Zaldarriaga also reminded customers to practice electrical safety measures such as:

•Refrain from using “octopus connections” or plugging in extension cords into a single power outlet as this could overheat and result in a fire and other accidents

• Ensure that electrical wires and cords are organized, tucked, or stored away

• Keep all electrical equipment away from sinks, tubs, showers and faucets to avoid water exposure

• Avoid placing and running electrical cords under rugs or carpets as constantly walking on these could damage the insulation of the wires

• Always check for breaks, kinks and signs of wear-and-tear on electrical cords before using

To avoid falling for fraudulent activities which is historically rampant as the Christmas season approaches, Zaldarriaga reminded Meralco customers to be vigilant and to transact only with authorized representatives of the company.

“We are reminding our customers that all transactions with Meralco, including payments, are accompanied by an official receipt and should only be done through our Business Centers and official payment channels and authorized payment partners,” he said, noting that official representatives of the company are in complete uniform with IDs and are using Meralco vehicles.

Zaldarriaga also assured Meralco customers that the distribution utility’s crews are on standby 24/7, ready to respond to any possible electricity service concern.