Meralco slashes July rates as refund order takes effect

Customers of the Manila Electric Co. (Meralco) can expect lower bills for the month of July, following the refund ordered by the Energy Regulatory Commission (ERC) earlier this month.

In an advisory, Meralco said the overall rate for a typical household was cut by 70.67 centavos to P9.7545 per kilowatt-hour (/kWh) from P10.4612/kWh in June.

This will translate to a decrease of P141 in the total bill of residential customers consuming 200 kilowatt-hours, following four straight months of increases.

“This month’s reduction effectively reversed all increases in the overall power rates since the start of the year,” Meralco said.

Meralco attributed the reduction to the decision of the ERC to recalculate the difference between the actual weighted average tariff (AWAT) and the final interim average rate (IAR) of P1.3522/kWh from July 2015 to June 2022.

The decision ordered Meralco to refund some P21.8 billion for a period of 12 months, or until the amount is fully refunded, translating to 86.56 centavos per kilowatt-hour for the July bill.

“As a highly regulated entity, Meralco’s rates undergo a review and confirmation process to make sure they are fair and reasonable,” Meralco Head of Regulatory Management Atty. Jose Ronald Valles said.

“The immediate implementation of the ERC decision was able to more than offset the impact of higher generation charge this month to the benefit of our customers,” he added.

Generation charges for the month increased by 21.66 centavos to P6.7756/kWh from P6.5590/kWh recorded in June, as charges from the Wholesale Electricity Spot Market (WESM) jumped amid tight supply conditions.

The company recorded a 10% growth in its first-quarter core net income to P5.624 billion from P5.113 billion the same quarter in 2021, as revenues jumped 33% to P85.905 billion.

The firm constructs, operates, and maintains electric distribution systems in the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal, as well as certain areas in the provinces of Batangas, Laguna, Pampanga, and Quezon.

Meralco counts as subsidiaries and associates Vantage Energy Solutions and Management Inc. and MeridianX Inc., acting as retail electricity suppliers in Luzon and the Visayas.—AOL, GMA News