Consumers can again expect lower electricity bills as the Manila Electric Co. (Meralco) on Wednesday announced a 13-centavo per kilowatt hour (kWh) rate cut this October primarily because of lower generation cost.
With the drop, the utility firm said, the total cost per kWh amounted to P8.42 per kWh, which Meralco said is the lowest since January 2010.
In a statement, Meralco said households with a consumption of 200 kWh will have a total bill decrease of P26 compared with last month’s bill.
It noted that the generation charge pulled down the bill, which was slashed by 14 centavos per kWh to P3.99 per kWh.
Similarly, Meralco said, October had the lowest generation charge since January 2010.
It explained that it had a lower bill of P3.71 per kWh from the Wholesale Electricity Spot Market (WESM) because of its lessened reliability on the electricity market and more on its contracted power plants and suppliers.
With the lower capacity supplied from the WESM, independent power producer administrators (IPPAs) and power supply agreements (PSAs) were the major sources of Meralco for power in September.
IPPAs raised their charge by 8 centavos per kWh, while PSAs had an increase of 18 centavos per kWh.
”Contributing also to the increase in IPP and PSA rates was their unusually low rates in the August supply month as they included adjustments from prior months such as cover cost deductions from Malampaya following the supply restrictions from previous months,” Meralco said.
For its power supply last month, the power distributor sourced both 47 percent from PSAs and IPPs, while it sourced six percent from the WESM.
For the other bill entries, Meralco said the transmission charge had increased by 1 centavo per kWh because of a higher ancillary charge.
System loss and subsidies also decreased by 1 centavo per kWh but was accompanied by an increase in taxes amounting to 1 centavo per kWh.
It added that its distribution charge had remained at its rate since July, when the Energy Regulatory Commission approved its petition to lower the rate.
The distribution utility said it does not earn from pass-on charges, namely the generation and transmission charge, as they go to power suppliers and the grid-operator National Grid Corporation of the Philippines.