Power rates in Metro Manila will go down in July after two consecutive months of increases, the Manila Electric Co. (Meralco) said.
This is due to lower generation charges for the month.
The P0.7213 per kilowatt hour (kWh) reduction this July brings
overall power rates of Meralco to P11.1899 from last month’s P11.9112 per kWh.
This is equivalent to a decrease of around P144 in the total bill of residential customers consuming 200 kWh monthly.
Meralco said generation charges went down by P0.6436 per kWh to P6.6066 per kWh this July from P7.2502 per kWh in June.
Charges from the Wholesale Electricity Spot Market (WESM) went down by P2.6597 per kWh as demand decreased amid the onset the rainy season.
Charges from power supply agreements (PSAs) and independent power producers (IPPs) went down by P0.3915 and P0.4658 per kWh, respectively, mainly due to lower coal prices.
Also contributing to the reduction was the peso appreciation which affected 20 percent of PSA and 97 percent of IPP costs.
Transmission and other charges including taxes and subsidies also registered a net reduction of P0.0777 per kWh as the collection of feed-in-tariff allowance remains suspended until the August billing month.
WESM accounted for 15 percent of Meralco’s total power requirements while IPPs had a 37 percent and PSAs, 48 percent.
