For the second straight month, the Manila Electric Company (Meralco) announced an electricity rate reduction, with a decrease of ₱0.1076 per kWh this June, bringing down the overall rate for a typical household to ₱12.1552 from ₱12.2628 per kWh in May.
“Our customers will continue to benefit from lower power rates this month mainly due to lower generation charge. A typical household consuming 200 kWh will see a decrease of around ₱22 in their total electricity bill for June,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said.
Lower generation charge drives overall rate decrease
Driving this month’s overall rate reduction is the lower generation charge, which went down by ₱0.1099 per kWh to ₱7.3552 per kWh, primarily due to lower charges from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM).
Charges from PSAs and IPPs decreased by ₱0.3699 and ₱0.1034 per kWh respectively, due to lower fuel costs and higher average dispatch.
WESM charges also decreased by ₱0.6342 per kWh as a result of improved supply situation in the Luzon grid for the May supply. The 533 MW reduction in average capacity on outage offset the increase in average demand of about 527 MW.
PSAs, IPPs, and WESM accounted for 48%, 33%, and 18% respectively of Meralco’s total energy requirement for the period.
Transmission and other charges
The decrease in the generation charge for this month more than offset the increase in transmission charge, which went up by P0.0214 per kWh due to higher ancillary service charges from the National Grid Corporation of the Philippines’ (NGCP) Ancillary Service Procurement Agreements and the Reserve Market.
Other charges, including taxes, registered a net decrease of ₱0.0191 per kWh.
Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance are all remitted to the government.
Meralco’s distribution charge, on the other hand, has not moved since the ₱0.0360 per kWh reduction for a typical residential customer beginning 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.
Meralco urges qualified customers to apply in the lifeline rate program, avail of senior citizen discount
Meralco reminded qualified customers anew to apply for available subsidy mechanisms namely the lifeline rate program and/or the senior citizen discount.
Beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) and other marginalized households with certification from their local Social Welfare and Development Office (SWDO) can apply for inclusion in the lifeline rate program to benefit from discounts on their electricity bills. Only customers with approved applications can receive the Lifeline Rate.
Filipinos aged 60 and above meanwhile can also apply for the senior citizen discount to get a 5% reduction on certain components of their Meralco bill as long as their consumption does not exceed 100 kWh. Qualified and interested customers can visit the nearest Meralco Business Center to apply.
Customers reminded to practice electrical safety
As the rainy season begins, Meralco reminded its customers to practice electrical safety especially when there is flooding.
Some tips that customers can practice are:
- Switch off the main electrical power switch or circuit breaker in case of flooding.
- Keep hands dry when touching electrical appliances and facilities.
- Make sure that all electrical wires, connectors, and other wiring devices are completely dry.
- If outlets or appliances are drenched, have a licensed electrician check these before using.
Customers can report their concerns through the My Meralco app or through Meralco’s official social media accounts on Facebook and X formerly Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211.
