Meralco cuts February power rates

The Manila Electric Company (Meralco), the country’s largest power distributor, slashed power rates in February due to lower generation charges.

Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga told reporters on Monday that the overall rate for a typical household decreased by P0.0704 per kilowatt-hour (kWh), from last month’s P8.7497 per kWh to P8.6793 per kWh in February.

This translates to a P14 cut in the total bill of residential customers consuming 200 kWh.

This month’s overall rate is also P0.1830 per kWh lower than February 2020’s rate of P8.8623 per kWh.

Zaldarriaga explained that the downward adjustment stemmed from the lower generation charge of P4.4152, down by P0.0422 against last month’s record.

The lower generation charge was mainly due to lower fixed charges from power supply agreements.

Meanwhile, transmission charges for residential customers declined by P0.0218 per kWh due to lower ancillary service charges, while taxes and other charges also decreased by P0.0154 per kWh.

The decrease in prices was due to a refund for excess collections imposed by the Energy Regulatory Commission.

Charges from independent power producers (IPPs) and the Wholesale Electricity Spot Market (WESM) increased.

IPP rates were slightly up by P0.2103 due to lower average dispatch, higher Malampaya natural gas prices caused by quarterly repricing, and peso depreciation.

WESM charges, on the other hand, inched up by P0.9577 per kWh due to higher Luzon grid plant capacity.

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