Meralco rates down in January

Customers of the Manila Electric Co. (Meralco) will get a slight reprieve in January, as the company on Monday announced a downward adjustment in electricity rates for the month due largely to lower generation charges during the period.

In an advisory, Meralco said it will reduce its rates by 21.89 centavos per kilowatt-hour (kWh) to P11.7428 per kWh from P11.9617 per kWh in December. This will translate to a decrease of around P44 in the total electricity bill of residential customers with a consumption of 200 kWh.

The adjustment comes as generation charges fell by 13.13 centavos per kWh to P6.8358 per kWh, due to lower charges from the Wholesale Electricity Spot Market (WESM) which went down by 88.40 centavos per kWh, and from Independent Power Producers (IPPs) which fell by 15.93 centavos per kWh.

“The reduction in WESM charges was brought about by the improved supply in the Luzon Grid as average peak demand dropped by 471 MW. The average capacity on outage likewise decreased by 305 MW,” Meralco said.

“IPP charges meanwhile went down because of the appreciation of the peso, affecting 96% of IPP costs that were dollar denominated; as well as lower cost of fuel and higher dispatch of the First Gas-Sta. Rita plant,” it added.

The reductions partly offset the 56.38-centavo per kWh increase in charges from Power Supply Agreements (PSAs) on the back of lower plant dispatch.

“While electricity rates decreased this month, we would like to remind our customers to continue practicing energy efficiency as a way of life especially with the dry season is fast approaching,” Meralco vice president and head of corporate communications Joe Zaldarriaga said.

Meralco 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.

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