Manila Electric Co. (Meralco), the country’s largest power distributor, will slash its rates by P0.3785 per kilowatt hour (kWh) in December, bringing the cost of electricity to P9.2487 per kWh.
This means that typical households that consume 200 kWh a month will see a P75.70 decrease in their December bill, P113.55 for those who consume 300 kWh, P151.40 for those who consume 400 kWh, and P189.25 for those who consume 500 kWh.
The rate reduction was mainly due to a P0.3035 cut in the generation charge.
The generation charge dropped to P4.6045 per kWh this month from P4.9080 per kWh in November on the back of an appreciating peso and lower WESM charges.
WESM charges decreased by P0.4658 per kWh amid a slight increase in demand for electricity in Luzon last month.
Charges from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) also fell P0.2191 per kWh and P0.3244 per kWh, respectively, primarily because of the strengthening of the peso against the US dollar.
The peso-dollar exchange rate affects about 97 percent of IPP and 60 percent of PSA charges.
Also, the transmission charge levied on residential customers went down by P0.0186 per kWh due to lower transmission wheeling and ancillary charges.
Taxes and other charges fell by P0.5664 per kWh this month.
But distribution, supply, and metering charges have remained unchanged for 29 months.