THE Manila Electric Co. (Meralco) will cut its generation charge by 84 centavos per kilowatt-hour (kWh) this month, giving some relief to power consumers.
The adjustment was attributed to lower generation charges from energy suppliers, lower transmission charge, lower taxes and other charges.
Meralco said the generation charge dropped by 66 centavos per kWh to P5.31 per kWh from last month’s P5.97 per kWh.
“The cost of power from all generation sources registered downward adjustments,” it noted in a statement.
Electricity bought from the energy spot market also declined as the billed volume from the Wholesale Electricity Spot Market (WESM) decreased by P11.94 per kWh.
The generation supply became tight in May, leading to a brief round of power outages in the Luzon Grid on May 16.
“Despite this, WESM charges in May were lower, partly due to the implementation of the Energy Regulatory Commission’s secondary price cap in the WESM,” Meralco said.
With the lower rates, a typical household consuming 200 kWh will see a reduction of almost P168 reduction in their June billing statement.
Those consuming 300 kWh will enjoy a cut of P252 while households whose monthly consumption is 400 kWh will pay P336 less.
“The adjustment is in generation charge so this is an automatic reduction [in]our customers’ billing,” Meralco spokesman Joe Zaldariaga told The Manila Times.
Zaldariaga said power users can expect another rate reduction in July because of the provisional authority given by the Energy Regulatory Commission (ERC) to Meralco to implement lower distribution charges starting next month.
The ERC has allowed Meralco to lower its distribution rates pegged at an average of P1.55 per kilowatt-hour from the current P1.64 per kWh during the next regulatory year.
The distribution charge, which takes less than a fifth of a customer’s monthly electricity bill, goes directly to Meralco and forms part of its earnings.