Meralco cuts June rates

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CUSTOMERS of the Manila Electric Co. (Meralco) will find their June billings lower this month as the power firm cut its rates by P1.43 per kilowatthour (kWh).

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The adjustment brings the overall rate to P8.17 per kWh from last month’s P9.60 per kWh.

The price cut is the lowest to be implemented since December 2009 and the biggest month-on-month reduction since January 2014. The rate decrease this month means a P286 reduction in the billing of a typical residential household consuming 200 kWh, P429 for those consuming 300 kwh, P572 for 400 kwh, and P715 for 500 kwh.

Meralco said the June rate reflects the refund of over-recovery on pass-through charges from January 2014 to December 2016 totaling to around P6.9 billion. The power distribution company’s petition for refund with prayer for provisional authority on implementation was granted by the Energy Regulatory Commission (ERC) on May 11, 2017 for implementation from June to August 2017.

The refund will not be a separate line item in the bill but will be embedded in the different pass-through charges indicated in the bill, which include generation, transmission and system loss charges.

Also contributing to this month’s rate decrease is the downward movement in the generation charge.

The overall generation charge went down this June by P1.0253 per kWh, from P4.8839 per kWh in May to P3.8586 per kWh. Contributing to the decrease are the P0.59 per kWh decrease in the cost of power sourced from IPPs, the P1.25 per kWh decrease in power sourced from the spot market, and the P0.04 per kWh decrease in PSA prices.

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