Meralco Rates to Drop by 12 Centavos in May due to Refunds

On Wednesday, the Manila Electric Co. (Meralco) announced that consumers can expect a decrease of 12 centavos per kilowatt-hour (kWh) in power rates for the month of May. Based on the firm, the overall rate this month went down to ₱10.063 per kWh compared to the ₱10.183 per kWh in April.

“The overall rate reduction was mainly due to the Energy Regulatory Commission’s (ERC) order to Meralco to refund a total of ₱7.8 billion,” Meralco explained. The refund for each of the company’s residential customers — of which there are approximately 7.46 million — is equivalent to ₱0.4669 per kWh, which “will appear as a separate line item in customers’ power bills.”

This adjustment rate for the month of May renders a ₱24 decrease for a household using 200 kWh, while residential consumers using 300 kWh, 400 kWh, and 500 kWh can expect a reduction of ₱36, ₱48, and ₱60, respectively. “As a highly regulated entity, Meralco’s rates are constantly being reviewed to make sure they are fair and reasonable,” added Meralco head of regulatory management Ronald Valles. “The immediate implementation of the ERC’s order more than offset the impact of the increase of the generation charge this month, benefitting Meralco customers.”

Power generation charges, on the other hand, rose to ₱6.2277 per kWh compared to the ₱5.8724 per kWh of the previous month, accounting for a ₱0.3553 increase. Meralco furthered that 36% of its power supply in April came from First Gas Power Corp.’s Sta. Rita and San Lorenzo plants as well as First NatGas Power Corp.’s San Gabriel plant.

Moreover, the depreciation of the Phillippine peso also affected the electric supplier’s charges alongside the increased usage of more expensive liquid fuel due to the inability of the Malampaya consortium to provide a sufficient supply of natural gas. Other costs such as transmission charges and taxes have, likewise, decreased by ₱0.0084 per kWh for residential consumers.

Within the same announcement, Meralco forwarded that no major power interruptions occurred in its service area, particularly during the May 9 elections because of its “months-long preparations.” “The distribution utility reported 35 isolated outage incidents, all of which were immediately addressed by field personnel that were strategically positioned across its franchise area,” added the firm. Finally, as the summer months roll in and power usage is projected to increase, Meralco has urged consumers to continue to practice energy efficiency methods.

Source: BusinessWorld