THE Manila Electric Co. (Meralco) will cut its electricity rate by 13 centavos per kilowatt hour (kWh) this month because of low generation charge, which went down by P0.16 per kWh.
With the adjustment, a typical household will save around P25, the power firm said.
Charges from the Wholesale Electricity Spot Market (WESM) also decreased by P0.98 per kWh due to lower spot prices driven by the fewer generator outages in May.
The share of WESM to Meralco’s total power requirements inched up from 11.7 percent to 12.8 percent. Cost of power from Independent Power Producers (IPPs) decreased by P0.22 per kWh. This was mainly due to an improvement in the dispatch of Quezon Power Philippines Limited Co. (QPPL).
Meanwhile, cost of power sourced from plants under the Power Supply Agreements (PSAs) was almost at the same level as last month, with only a slight increase of P0.02 per kWh. The share of PSAs and IPPs stood at 46.1 percent and 41.1 percent, respectively.
Taxes and other charges also decreased by a combined amount of around P0.033 per kWh following the reduction in generation charge.