MM power rates may go down in March

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    Ahead of official announcements of rate adjustments for the month of February, Manila Electric Co. (Meralco) said tthe cost of electricity in its franchise could go down next month mainly due to higher power demand in the Luzon grid.

    Joe Zaldarriaga, Meralco spokesman, said in a statement the upswing in demand will enable fixed costs from power suppliers to be spread over higher energy volume and will lead to lower effective rates to consumers.

    “The initial data suggests the generation costs for February have a very strong likelihood of a decrease due to higher demand in the Luzon grid in January as compared to December…

    Given this, charges from power supply agreements also are projected to decrease,” Meralco said.

    Zaldarriaga also said so far, the net overall power rate decrease since the start of 2020 is at more than P1 per kilowatt hour (kWh) which makes Meralco rates at the lowest levels in three years.

    Earlier this month, Meralco implemented a P0.2744 per kWh increase in power rates as generation charges were pushed by lower demand for electricity in the Luzon grid.

    The said adjustment was equivalent to an increase of around P55 in the bill of a residential customer consuming 200 kWh monthly and brought overall power rates to P8.7497 per kWh from last month’s P8.4753 per kWh.