The Manila Electric Co. (Meralco) said its retail power rates were at their lowest last year and resulted to P14- billion worth of savings to customers.
The company said average retail rate in 2020 was at P7.96 per kilowatt hour (kWh), a 10 percent drop from 2019’s P8.87 per kWh.
This is mainly due to the 16.1-percent decrease in generation charges following the implementation of new power supply agreements that underwent competitive selection process.
This in turn provided P8.4 billion savings in generation charges to consumers and slashed the average system loss charge by 12.6 percent.
Meralco said the drop in wholesale electricity spot market prices, the peso appreciation as well as the force majeure claims during the community quarantine that slashed fixed costs and charges from temporary suspension of mid-merit supply contracts also resulted in consumer savings of up to P2.4 billion last year.
The company said it provided as much as P3.2 billion payment relief to customers who were unable to meet their guaranteed minimum billing demand.
“We see the lower rates last year as hopefully a relief for our consumers, especially during these trying times. We hope the lower power costs as projected this month will further provide assistance to our customers in so far as their power bills are concerned,” said Joe Zaldarriaga, Meralco spokesman, in a statement.
The company earlier announced a possible reduction in power rates this month due to lower generation costs and the impact of a P13.9-billion refund order from the Energy Regulatory Commission.
Meralco is set to announce this week the power rate movement for the month.