The Manila Electric Co. (Meralco) on Monday announced that the residential rate for a typical household will go down this August by P0.11 per kilowatt-hour (kWh).
This month’s overall rate will bring down the P9.12 per kWh in August 2015 by P0.62 per kWh, to P8.50 per kWh.
This translates to a reduction of P22 in the electricity bill of a household with monthly consumption of 200 kWh.
The decrease in the overall rate results from the generation charge being P0.20 per kWh lower than that of last month.
At P3.86 per kWh, it is also P0.69 per kWh lower compared with the P4.55 per kWh in August 2015.
This month’s generation charge is the second lowest since October 2004.
Charges from the Wholesale Electricity Spot Market (WESM) decreased by P3.48 per kWh because of lower spot prices.
There was only one instance of yellow alert for the July supply month (July 19) compared with five in June (June 13, 14, 17, 21 and 22).
There was no instance of red alert for both months.
The share of WESM to Meralco’s total power requirements for the July supply month went up to 9.5 percent, from 7.8 percent the previous month.
Cost of power from the Independent Power Producers (IPPs), meanwhile, increased by P0.16 per kWh because of the lower dispatch of San Lorenzo and Santa Rita.
Cost of power sourced from plants under the Power Supply Agreements (PSAs), on the other hand, was almost at the same level as last month, with only a slight increase of P0.002 per kWh.
The shares of PSAs and IPPs stood at 49.3 percent and 40.3 percent, respectively.
Adjustments in components
The lower generation charge more than offsets an increase in the transmission charge of P0.08 per kWh because of higher regulating reserve.
Taxes and other charges will also increase by a combined amount of around P0.01 per kWh.
The distribution, supply and metering charges have remained unchanged for 13 months, after they registered a reduction in July 2015, according to Meralco.
The power distributor 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, it added.