October rate slash breaks 3-month hikes
Meralco has announced a 36-centavo per kilowatt-hour (kWh) reduction in overall electricity rates this month. The improved supply situation in the Luzon grid contributed to the reduction. Average demand and capacity on outage decreased by 544 megawatts (MW) and 519 MW, respectively.
By Maria Bernadette Romero – 12 Oct 2024, 00:20
from Daily Tribune
Manila Electric Co. (Meralco)
After three consecutive months of rising power rates, Manila Electric Co. (Meralco) customers can finally breathe a sigh of relief.
The power distributor has announced a 36-centavo per kilowatt-hour (kWh) reduction in overall electricity rates this month.
Meralco confirmed on Friday that the rate cut brings the cost of electricity for a typical household down to P11.4295 per kWh from last month’s P11.7882 per kWh.
For residential customers consuming 200 kWh, the adjustment will result in a P72 reduction in their total electricity bill.
Meralco attributed the decrease primarily to about a 31-centavo per kWh drop in the generation charge, driven by lower costs from the Wholesale Electricity Spot Market (WESM).
Lower WESM charges
WESM charges fell by P5.1001 per kWh after the completion of the collection of deferred May costs, as ordered by the Energy Regulatory Commission.
The improved supply situation in the Luzon grid also contributed to the reduction. Average demand and capacity on outage decreased by 544 megawatts (MW) and 519 MW, respectively.
Additionally, the National Grid Corporation of the Philippines reported a 4-centavo per kWh decrease in the transmission charge, due to lower ancillary service costs. Taxes and other charges also saw a slight reduction of 1 centavo per kWh.
Last month, Meralco customers faced a third straight hike, with household rates rising to P11.79 per kWh, up from P11.63 per kWh in August.
Customers who consumed at least 200 kWh saw an additional P31 increase in their bills due to a 29-centavo rise in transmission charges linked to higher ancillary service fees.
