THE Manila Electric Company (Meralco) announced a rate decrease of P0.1852 per kilowatt-hour (kWh) for September, citing lower generation charges as the primary reason. This adjustment brings the overall electricity rate for a typical residential household down to P13.0851 per kWh from P13.2703 per kWh in August.
For residential customers consuming 200 kWh per month, this means a savings of approximately P37 on their electricity bill. Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said the company hopes this reduction provides relief to consumers, especially during a period when electricity consumption tends to be lower.
Lower Generation Charges Drive Rate Cut
The main driver behind this month’s lower electricity rate is the decrease in generation charges, which fell by P0.2603 per kWh. This was due to the reduced costs from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs). IPP charges declined by P1.3459 per kWh, while PSA charges dropped by P0.3660 per kWh.
These reductions were made possible by the strengthening of the Philippine Peso against the US Dollar, which affected the pricing of around 99% of IPP costs and 57% of PSA costs, both of which are mostly dollar-denominated. Lower international fuel prices also helped reduce generation costs.
These cost reductions more than offset the P0.3785 per kWh increase in Wholesale Electricity Spot Market (WESM) charges, which rose due to higher average demand in the Luzon grid and increased power plant outages.
Contract Price Adjustments Begin
Starting this September, Meralco has also begun collecting contract price adjustments from Sual Power Inc. (SPI) and South Premiere Power Corporation (SPPC). This follows a Supreme Court ruling affirming their right to invoke the "Change in Circumstance" clause in their supply contracts. The Energy Regulatory Commission (ERC) approved the recovery of P5.1 billion over six months, translating to an additional P0.26 per kWh for this month.
During the period, Meralco sourced 65% of its power from PSAs, 29% from IPPs, and 6% from WESM.
Other Charges and Adjustments
The transmission charge increased by P0.1130 per kWh, mainly due to higher ancillary service charges from the Reserve Market. Meanwhile, other charges including taxes posted a net decrease of P0.0379 per kWh.
Meralco clarified that its distribution charge remains unchanged, following a reduction of P0.0360 per kWh for residential customers implemented in August 2022. Customers also continue to benefit from an ongoing distribution-related true-up adjustment, which further reduces rates by P0.2024 per kWh.
Reminders on Safety and Efficiency
With the rainy season still ongoing, Zaldarriaga reminded customers to practice electrical safety during flooding. Key tips include turning off the main circuit breaker when water enters the home, ensuring hands are dry before touching appliances, and allowing drenched outlets and devices to fully dry before reuse.
He also encouraged households to adopt energy efficiency practices to manage electricity usage. These include regularly cleaning air conditioner filters, ironing clothes in bulk, avoiding overloading refrigerators, and using LED lighting.
To assist customers, Meralco offers tools such as the Meralco Appliance Calculator, which helps estimate the energy consumption of various appliances.
For concerns or inquiries, customers may reach Meralco through the My Meralco app, official social media pages, hotline 16211, or by texting 0920-9716211 or 0917-5516211.
