Meralco Will Decrease Electricity Bills in July

Manila Electric Co. or Meralco has stated that for July 2022, consumers can expect a decrease in their electricity bill by 71 centavos per kilowatt-hour. From ₱10.4612 kWh last June, the overall rate for June will be reduced to ₱9.7545 per kWh.

Meralco says that “This month’s reduction effectively reversed all increases in the overall power rates since the start of the year,”

A consumer that uses 200 per kWh will feel a ₱141 decrease in the total electricity bill.

For the billing period of June, the generation charge increased by ₱0.2166 per kWh from the price of ₱6.5590 in the past few months. According to Meralco, the generation charge includes the last installment of deferred generation costs last April. The added charge is around ₱0.13 per kWh.

The Wholesale Electricity Spot Market (WESM) prices went up by ₱3.9649 per kWh in light of tightening supplies in the Luzon area. WESM is regarded as the marketplace for trading electricity.

Around this period, the National Grid Corp of the Philippines lifted yellow and red alerts for the region.

A red alert is escalated in times of insufficient power supply and possible power interruptions.  For instances of thin power reserves that would potentially lead to brownouts in rotation, a yellow alert is raised.

According to Meralco, around 32% of its power supply agreements (PSAs) are dollar-dominated. The skyrocketing costs of international coal prices also reflected increased rates from supply deals.

On the other hand, fees from independent power producers decreased to ₱0.4669 per kWh.

This month, Meralco will also begin implementing the Energy Regulatory Commission (ERC) and will be continuously applied within 12 months until the full amount is refunded.

Source: Inquirer