As the rainy season begins, customers of the Manila Electric Company (Meralco) will continue to benefit from lower power rates this June following the distribution utility’s announcement of another rate reduction equivalent to ₱0.1076 per kWh.
This marks the second straight month of power rate reductions for Meralco customers, with the overall rate for a typical household down to ₱12.1552 from ₱12.2628 per kWh in May. Last month, the Manuel V. Pangilinan-led company also announced a significant power rate cut of ₱0.7499 per kWh.
“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.
For households consuming 300 kWh, the reduction means they will pay ₱32 less in their total electricity bill this month. Meanwhile, customers with a 400-kWh consumption will see a ₱43 reduction while those with a 500-kWh consumption will see a decrease of ₱54 in their electricity bill.
GOOD NEWS AGAIN. Meralco customers are set to benefit anew this June from the second consecutive power rate reduction announced by the company.
Lower generation charge drives overall rate decrease, offsets increase in transmission charge
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.
The decrease in the generation charge for this month more than offset the increase in transmission charge, which went up by ₱0.0214 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 ₱0.2024 per kWh for residential customers.
Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga calls on qualified customers of the company to apply for inclusion in the lifeline rate program and/or senior citizen discount.
Lifeline rate program and senior citizen discount
Meralco also reminded its qualified customers anew to apply for available subsidy mechanisms namely the lifeline rate program and/or the senior citizen discount.
“We encourage our qualified customers to apply for inclusion in available subsidy programs so they can avail of the discounts on their electricity bills. They can visit the nearest Meralco Business Center to apply,” Zaldarriaga said.
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 receive discounts on their electricity bills. Only customers with approved applications can receive the Lifeline Rate.
Meanwhile, Filipinos aged 60 and above can also apply for the senior citizen discount to get a 5% reduction on certain components of their Meralco bill. Lifeline rate and senior citizen discount will be applied to bills of qualified customers as long as their consumption does not exceed 100 kWh.
Electrical safety tips for the rainy season
With the onset of the rainy season, Meralco reminded its customers to practice electrical safety to avoid possible accidents especially when there is flooding.
“We remind our customers to prioritize safety this rainy season. Simple precautions can spell a big difference between safety and danger,” Zaldarriaga said.
Zaldarriaga also advised customers to continue practicing the following electrical safety measures which are very important especially when there is flooding:
- Ensure that the main electrical power switch or circuit breaker is off.
- Unplug appliances from wall sockets. Turn off permanently connected equipment and unscrew all light bulbs if possible.
- Always keep your hands dry when handling any electrical equipment or facility.
- Remove mud and dirt from service equipment or main circuit breaker/fuse and its enclosure using rubber gloves and rubber-soled shoes.
- Make sure that all electrical wires, connectors, and other wiring devices are completely dry.
- Once all electrical wires and accessories are clean and dry, have a licensed electrician inspect the wiring system and all appliances. Do not attempt to turn on electrical appliances that may have been damaged by flooding.
