Meralco cuts power rates in January

MANILA, Philippines — Consumers get a reprieve as the Manila Electric Company nipped power rates in January as generation charges slid down.

In a statement, the country's largest power distributor said it would be charging lower power rates, by P0.0746 per kiloWatt-hour to P9.7027 per kWh, in January. This would translate to a cut of P15 from a residential consumer that consumes 200 kWh monthly.

For most of 2021, Meralco customers faced continuous power rate hikes monthly.

The Pangilinan-run utility provider reported generation charges fell by P0.1081 per kWh due to lower costs from power supply agreements and independent power producers.

As it is, power supply agreements and independent power producers supply 46.5% and 41.3% of each of Meralco's energy requirements.

This offset increased charges emanating from the wholesale electricity spot market, which increased by P0.8511 per kWh due to frequent outages in the Luzon grid. The damage from typhoon 'Odette' and sustained restrictions on Malampaya gas kept supply limited for the grid as well.

Transmission charge for Meralco's residential customers rose P0.0728 per kWh.

The regulator-mandated refund, which appears in the Meralco bill as "Dist True-Up" remains in force. Meralco refunds residential consumers at a rate of P0.2761 per kWh, which would be in place until the distributor pays back P13.9 billion in 24 months or until the amount is fully paid back.

As it is, Meralco's collection of the Universal Charge-Environmental Charge, at P0.0025 per kWh remains suspended.