Power rates in Metro Manila will go down this October after a brief upward adjustment last month as lower feed-in-tariff allowance (FIT-All) and generation charges dragged overall rates, according to Manila Electric Co. (Meralco).
The P0.0737 per kilowatt hour (kWh) downward rate adjustment brings overall power rates of Meralco to P9.8628 from last month’s P9.9365 per kWh. It is equivalent to a decrease of around P15 in the total bill of residential customers consuming 200 kWh monthly.
Meralco said overall rate for October was pulled down by a P0.0619 per kWh reduction in the FIT-All as the Energy Regulatory Commission (ERC) approved the collection of a P0.0364 FIT-All per kWh starting the October 2022 billing period, down from the P0.0983 per kWh previously implemented.
Meanwhile, Meralco’s generation charge went down by P0.0201 to P6.9192 from P6.9393 per kWh, on the back of lower costs from supply contracts.
Charges from independent power producers (IPPs) and power supply agreements (PSAs) decreased by P0.5073 and P0.0702 per kWh, respectively. Meralco said the reduced use of more expensive alternative fuel by natural gas-fired power plants and increased plant utilization of IPPs and PSAs more than offset the impact of the steep depreciation of the Philippine peso. – Jed Macapagal
