CUSTOMERS of Manila Electric Co. (Meralco) will enjoy lower power rates this month thanks to reduced generation charge.
The power firm said the electricity rates for its residential customers will go down by 21 centavos per kilowatt hour (kWh).
This will translate to a P41.30 monthly savings for a typical household consuming 200 kWh.
At P8.40 per kWh, this month’s overall rate is lower by P1.27 per kWh compared to January 2015 and is the lowest since January 2010.
Meralco attributed the reduction in the overall rates to the generation charge, which decreased by 21 centavos per kWh from last month.
At P3.92 per kWh, this month’s generation charge is also the lowest since January 2010.
At the same time, power plants under the Power Supply Agreements (PSAs) registered a decrease of 49 centavos per kWh.
This was mainly due to the reduction in capacity fees of Pagbilao, Sual, Calaca, and Ilijan power plants that offset higher charges from Independent Power Producers (IPPs) and the Wholesale Electricity Spot Market (WESM).
The reduction in capacity fees, Meralco said, is due to the annual reconciliation of outage allowances under the contracts approved by the Energy Regulatory Commission (ERC).
The average rate of the IPPs, however, increased by four centavos per kWh.
This was due primarily to a lower dispatch of Quezon Power Philippines Limited (QPPL) Co. and San Lorenzo power plant.
Meanwhile, charges from the WESM registered an increase of 35 centavos per kWh, largely caused by billing adjustments from prior periods.
The share of IPPs, PSAs, and WESM to Meralco’s total power requirements stood at 48.7, 46.7, and 4.6 percent, respectively.
Besides generation cost, taxes also went down by two centavos per kWh.
Transmission charge, on the other hand, registered an increase of two centavos per kWh due to lower load factor.
Meralco’s distribution, supply, and metering charges remain unchanged after it registered a reduction last July.