RESIDENTIAL CUSTOMERS of Manila Electric Co. (Meralco) could get some relief this month as the power distributor announced a decline in electricity rates for May, driven by lower generation and transmission charges.
Following three months of hikes, the overall rate for May is set to decrease by P0.7499 per kilowatt-hour (kWh) to P12.2628 per kWh from P13.0127 per kWh in April, Meralco said in a statement on Tuesday.
This will translate to a downward adjustment of around P150 in the total electricity bill of customers consuming 200 kWh. Those consuming 300 kWh, 400 kWh, and 500 kWh will see reductions of P225, P300, and P375, respectively.
“The reduction in charges is due to lower generation and transmission costs, which we can see have decreased quite significantly,” Joe R. Zaldarriaga, Meralco vice-president and head of corporate communications, said partly in Filipino.
Generation charges, which cover the cost of power purchased from suppliers, decreased by P0.3144 per kWh to P7.4651 per kWh this month, primarily due to lower charges from the Wholesale Electricity Spot Market (WESM) and independent power producers (IPPs).
WESM charges went down by P1.1424 per kWh amid the improved supply situation in the Luzon grid, Meralco said.
“While the grid’s peak demand rose by 1,372 MW (megawatts), this was more than offset by the 1,475-MW reduction in average capacity on outage.”
Charges from IPPs also declined by P0.9555 per kWh amid higher average IPP dispatch and the peso’s appreciation, which affected around 97% of dollar-denominated costs. The peso mostly traded at the P56 level last month before closing at P55.833 on April 30, rising from its P57.21 finish on March 31, as weak US economic data fueled recession fears, which pulled down the dollar.
These reductions helped offset the P0.1884 per kWh hike in charges from power supply agreements (PSA) due to lower dispatch.
WESM, IPPs, and PSAs accounted for 26%, 33%, and 41%, respectively, of Meralco’s total energy requirement for the period.
The P0.2970 per kWh decrease in the transmission charge — driven by the decline in ancillary services charges from the reserve market and contracts — also contributed to the reduction in May electricity rates.
Other charges, including taxes, dropped by a net P0.1385 per kWh.
Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively. Taxes, universal charges, and Feed-in Tariff allowance are remitted to the government.
Meralco’s distribution charge has remained unchanged at P0.0360 per kWh since August 2022.
“Customers also continue to benefit from the ongoing implementation of the distribution-related true-up adjustment, equivalent to a reduction of P0.2024 per kWh for residential customers,” it said.
STABLE POWER DURING ELECTIONSMeanwhile, Meralco said that electricity service across its franchise area remained stable during the midterm elections held on Monday.
“This was made possible by our early preparations that started November last year, conducting inspection and maintenance of power facilities, ensuring stable power to critical election sites,” said Froilan J. Savet, Meralco first vice-president and head of networks of Meralco.
Mr. Savet said the company deployed more than 3,000 personnel in strategic locations, including the Commission on Elections’ Command Center in Parañaque City, which served as the central hub for election monitoring, to ensure rapid response.
“Meralco will remain on full alert and on standby 24/7 to respond to possible concerns until the winners of the midterm elections have been proclaimed,” Mr. Zaldarriaga added.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
