Electricity rates go down this June

Metro Manila (CNN Philippines, June 16) — After a ₱0.29 per kWh reduction in May, the Manila Electric Company (Meralco) announced that power rates for June will decrease by ₱1.43 per kWh for a typical residential household.

This brings the overall rate to ₱8.17 per kWh from last month’s ₱9.60 per kWh.

The rate decrease this month amounts to a ₱285 decrease in the total bill of a household consuming 200 kWh.

It is the second lowest overall rate since December 2009.

The June rate reflects the refund of over-recovery on pass-through charges from January 2014 to December 2016 totaling around ₱6.9 billion.

Meralco’s petition for refund with prayer for provisional authority on implementation was granted by the Energy Regulatory Commission (ERC) on May 11 this year for implementation from June to August.

The refund will not be a separate line item in the bill but will be embedded in the different pass-through charges indicated in the bill, which include generation, transmission, and system loss charges, and lifeline and senior citizen subsidies.

For residential customers, the refund translates to a reduction of ₱0.79 per kWh, excluding taxes.

Also contributing to this month’s rate decrease is the downward movement in the generation charge.

Lower generation cost

Overall generation charge decreased this June by ₱1.0253 per kWh, from ₱4.8839 per kWh in May to ₱3.8586 per kWh this month.

Contributing to the decrease are the ₱0.59 per kWh decrease in the cost of power sourced from independent power producers (IPPs), the ₱1.25 per kWh decrease in the cost of power sourced from the Wholesale Electricity Spot Market (WESM), and the ₱0.04 per kWh decrease in power supply agreement (PSA) prices.

There was a reduction in IPP and PSA costs because of higher plant dispatch, continuous peso appreciation, and the completion of the staggered recovery of liquid fuel cost that was incurred during the Malampaya maintenance shutdown from January 28 to February 16 this year.

The share of IPP and PSA purchases to Meralco’s total requirements are 40.7 percent and 45.6 percent respectively.

Meanwhile, the decrease in the cost of power supplied through the WESM is due to fewer plant outages despite higher power demand in Luzon.

The  share of WESM this month stood at 13.7 percent.

Adjustments in other bill components

There will be a decrease of ₱0.11 per kWh in the transmission charges of residential customers, while taxes and other charges will also go down by a combined amount of around ₱0.35 per kWh.

However, starting this month, the Feed-in Tariff Allowance (FiT-All) will be at ₱0.1830 per kWh, after the ERC recently approved an increase of ₱0.0590 per kWh on the previous rate.

FiT-All is a pass-through charge remitted to the National Transmission Corporation (TransCo) as an incentive for renewable energy developers, such as those operating wind, run-of-river hydropower, solar and biomass facilities.

Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 23 months, after registered reductions in July 2015.

Meralco reiterated that it does not earn from the pass-through charges, such as generation and transmission charges.

Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the National Grid Corporation of the Philippines (NGCP).

Rainy season safety tips for customers

This rainy season, Meralco gives customers important safety tips to prepare for floods or typhoons:

  • Charge your cellphones, flashlights, and other important gadgets or rechargeable appliances.
  • Stay updated with the news on TV and radio.
  • Store food and potable water.
  • During typhoon, use rubber boots and gloves for added protection.
  • In case of flood, switch off your circuit breaker.
  • After the typhoon, help clean the debris in your area.
  • If outlets or appliances are drenched, have a licensed electrician check these before using.

For more helpful tips, customers may visit Meralco’s website at www.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco.