Meralco Dec rates lowest in 3 years

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    Power rates in Metro Manila will go down by P0.0352 per kilowatt hour (kWh) this month ,according to the Manila Electric Co. (Meralco), as generation charges were pulled by lower demand for electricity in Luzon.

    The second consecutive downward rate adjustment will be equivalent to a decrease of around P7 in the bill of a residential customer consuming 200 kWh monthly and brings overall power rates to P8.4753 per kWh from last month’s P8.5105 per kWh.

    Meralco said this month’s overall rate is the lowest in more than three years and equivalent to a net rate reduction of P1.3870 per kWh or more than P277 bill reduction for a 200 kWh household, since the start of the year.

    From P4.2018 per kWh in November, the generation charge decreased by P0.0502 per kWh to P4.1516 per kWh this December as all sources of supply registered lower charges this month.

    Meralco said there was a P0.1881 per kWh reduction in charges from the Wholesale Electricity Spot Market (WESM) brought by the improved power supply situation in the Luzon grid following a drop in demand which decreased due to successive weather disturbances.

    Cost of power from independent power producers (IPPs) also decreased by P0.2577 per kWh due to improved average plant dispatch and Peso appreciation with charges from power supply agreements (PSAs) going down by P0.0214 per kWh with favorable foreign exchange rates.

    Meanwhile, transmission charge for residential customers registered a slight reduction of P0.0044 per kWh due to lower power delivery and ancillary service charges but taxes and other charges registered a net increase of P0.0194 per kWh

    Meralco’s interim distribution rates comprised of distribution, supply and metering charges, the only bill component paid to the company remained at P1.381 per kWh for 65 months already.

    The company said the total power requirements for the month were accounted to 9 percent from

    WESM accounted for 9 percent of total power requirements; IPPs, 39 percent and PSAs, 52 percent. – Jed Macapagal