Manila Electric Co. (Meralco) bills will fall by 70 centavos per kilowatt hour (kWh) or P140 for an average household with a consumption of 200 kWh.
“Overall rates went down by 70 [centavos]per kilowatt hour (kWh) this May,” Meralco said in a statement on Friday.
The distribution utility said the lower rates resulted from reduced generation charge from all of its supply contracts and decreased trading prices at the Wholesale Electricity Spot Market (WESM).
For 10 percent of its power requirements, Meralco tapped WESM, which reduced power costs by P4.19 per kWh.
The utility said the decreased Generation Rate Adjustment Mechanism (GRAM) also contributed to the fall of the generation charge, a reduction of 6 centavos per kWh.
“The effect of the Malampaya shutdown was moderated by lower prices of condensate and natural gas in the April supply month versus March,” it added.
The price of natural gas was reduced by 19 percent as compared to the previous period after Malampaya natural gas underwent its quarterly repricing to reflect lower cost of fuel.
Meralco also saw price decreases in prices of power it sources from independent power producers at 47 percent or 75 centavos per kWh and 43 percent from Power Supply Agreements or 6 centavos per kWh.
It said the generation charge component fell by 60 centavos per kWh to P4.81 per kWh from P5.41 per kWh in April.
Taxes also decreased by 7 centavos per kWh, while other charges had a reduction of 8 centavos per kWh.
The fall resulted in an offset for an increase in the transmission charge.
Meralco said it does not earn from the pass-through charges, such as the generation and transmission charges.
Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the National Grid Corporation of the Philippines (NGCP).
Meanwhile, Meralco reminded its customers to observe electrical safety in line with its initiatives to support Electrical Safety Month.
The government has declared the month of May of every year as Electrical Safety Month.