Meralco cuts rates for March

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Manila Electric Co. (Meralco) customers will enjoy a slight decline in their electricity bills this month as well as a stable power supply.

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Consumers will see a 45-centavo per kilowatt-hour (kWh) reduction in their March rates as the generation charge along with ot er components of the electricity bill posted downward adjustments. Thus, the bill of a typical household using 200 kWh will decrease by around P90 this month, while those who consume 300 kWh to 500 kWh a month will save P134 to P233.

According to Meralco, the rate decrease was mainly due to a 33-centavo-per-kWh drop in the generation charge, which went down from P5.54 per kWh last February to P5.21 per kWh this month.

The decrease in the generation charge was primarily driven by reductions in the cost of power sourced from plants selling to Meralco under power supply agreements (PSAs).

The average cost of power under the PSAs decreased by 25 centavos per kWh from P4.81 per kWh to P4.57 per kWh. Meralco’s PSAs, which su plied 53 percent of it’s requirements, remained the cheapest source of supply. Independent power producers (IPPs) also registered a reduction of 36 centavos per kWh. From the previous month’s level of P5.99 per kWh, IPP rates have gone down to P5.63 per kWh this month. The IPPs’ supplied 43 percent of Meralco’s total power requirements in February.

On the other hand, the cost of power sourced from the Wholesale Electric Spot Market (WESM) posted the largest reduction at 51-centavo per kWh, but purchases from the WESM accounted for only four percent of Meralco’s requirements.

From P5.41 per kWh in January, WESM charges went down to P4.90 per kWh in February, as demand remained moderate and no major power plant outages were reported.

“Contributing to the lower generation charge, too, was the strengthening of the peso during the February supply month,” Meralco added.

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