Power rates to drop further in July

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POWER rates will further go down in July, the Manila Electric Co. (Meralco) said on Tuesday.

Meralco spokesman Joe Zaldarriaga said the additional adjustment is attributed to the provisional authority given to the utility firm to implement lower distribution charges starting next month.

The Energy Regulatory Commission (ERC) has allowed Meralco to lower its distribution rates pegged at an average of P1.5562 per kilowatt-hour from the current P1.6474 per kWh during the next regulatory year.

“To allow its customers to immediately enjoy the lower distribution rates, it is necessary that a provisional authority be immediately issued authorizing it to implement the proposed rates pending a hearing on the merits of the instant application,” the ERC said in its order.


The distribution charge, which takes less than a fifth of a customer’s monthly electricity bill, goes directly to Meralco and forms part of its earnings.

The ERC said that based on socialized structure of Meralco rates, the actual amount paid by different customer classes (based on volume usage) differs from the average tariff.

The rate is P1.13 per kWh for residential customers with a monthly consumption of up to 200 kWh; P1.49 for those consuming between 201 and 300 kWh; P1.82 for consumption
of between 301 and 400 kWh; and P2.41 for consumption above 400 kWh.

According to the ERC, Meralco on March 31 filed an application for the approval of the so-called Maximum Average Price (MAP) for the regulatory year 2015.

The MAP will be effective from July 1, 2014 to June 30, 2015.

Zaldarriaga said the July adjustment is apart from the rate reduction this month that was announced on Monday by the company.

“We will have a big power rate reduction because after the June cut, we will further lower electricity rates in July,” he told The Manila Times.

Meralco on Monday announced that it will lower its generation charge by 84 centavos per kWh in June, which means that a typical household consuming 200 kWh will see a reduction of almost P168 in its bill for June.

For its July rate adjustment, Meralco said residential customers with a monthly consumption of up to 200 kWh would have an approved distribution rate of P1.1282 per kWh; 201 to 300 kWh at P1.4855 per kWh; 301 to 400 kWh at P1.82227 per kWh; and 400 kWh and above at P2.41 per kWh.

The utility earlier said different customer classes will experience around five percent to six percent reduction in distribution, supply and metering charges.

A residential customer consuming 200 kWh, for instance, will have a combined P0.15 per kWh reduction in Meralco charges, from P2.35 per kWh to P2.20 per kWh, representing around 6-percent reduction.

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  1. Bakit hinahayaan ng ERC ang socialized structure ng Meralco rates gayung ang mga makinarya na ginagamit sa pag-generate at pagpo-produce ng power ay wala namang social structure at parepareho naman itong mga makina. Kaya ba ginagawa ito ng Meralco ay sa dahilan na malaki ang kikitain nila sa mga matataas na gumamit ng power at kaya ba ito hinahayaan ng ERC ay dahil may vested interest sila sa bagay na ito? Hindi ba ang layunin ng pagtatatag ng ERC ay upang magbigay proteksiyon para sa kapakanan ng ating mamayan? Sa mga action ngayon ERC, hindi ba lumalabas na ang binigyan nila ng proteksiyon ay yung Meralco at mga power producers at hindi ang kapakanan ng ating mamamayan?