Electricity rates of giant utility Manila Electric Co. (Meralco) again posted a drop this month, because of lower generation charges from power suppliers.
From a decrease of P0.45 per kilowatt-hour in December, the generation rate component of Meralco customers’ electricity bills dropped by about P0.08 per kilowatt-hour, bringing down its generation charge to P4.50 per kilowatt-hour this January.
With the reduction in the generation charge, system loss charges also declined. A residential customer consuming 100 kilowatt-hours per month will have an P8 reduction in his or her bill this month.
Customers using 200 kilowatt-hours will see their monthly bills go down by P18.80.
The country’s largest distribution utility attributed the decrease to low prices at the Wholesale Electricity Spot Market (WESM), which accounts for less than 10 percent of its power supply, and the use of cheaper fuel by its contracted independent power producers, which supply more than half of its total requirements.
“Very low prices in the WESM and the use of banked gas by the First Gas plants last December were the main drivers for the reduction,” said Ivanna de la Peña, Meralco’s vice president for utility economics.