Electricity rates in Metro Manila for January will drop by P0.2189 per kilowatt hour (kWh) as a result of lower generation charges after a two-month rise, the main utility company said.
The Manila Electric Co. (Meralco) said on Monday the P0.2189 per kWh price decline will bring the cost of power to P11.7428 per kWh this month from P11.9617 in December 2024.
The rate adjustment means residential customers using up to 200 kWh per month will find their January monthly bills shaved by as much as P44, Meralco explained.
Last month, Meralco implemented a P0.1048 per kWh rate increase, driven by higher generation charges.
December’s adjustment was equivalent to an increase of P21 in the bill of a residential customer using up to 200 kWh monthly, and brought overall power rates to P11.9617 per kWh from P11.8569 per kWh in November.
The overall rate adjustment this January is made possible by a P0.1313 per kWh drop in generation charges, due to the lower cost of power from the Wholesale Electricity Spot Market (WESM), where prices eased by P0.8840 per kWh. The cost of electricity from Independent Power Producers (IPPs) also declined by P0.1593 per kWh.
Improved supply
Meralco said an improvement in the supply situation for the Luzon Grid helped bring down the cost of electricity at WESM. The average peak demand for the grid declined by 471 megawatts (MW) while average outage capacity decreased by 305 MW.
IPPs were able to sell their electricity at a lower rate as the peso strengthened that affected up to 97 percent of their dollar-denominated costs. Also supporting this consumer-friendly development are the lower cost of fuel and higher dispatch of power plants.
Transmission and other charges also registered a a net reduction of P0.0876 per kWh.
Meralco said, however, the reductions were tempered by a P0.5638 per kWh increase in charges from Power Supply Agreements (PSAs), which experienced lower plant dispatch.
Meralco reiterated its earnings come from distribution, supply and metering charges totaling P1.3522 per kWh which was unchanged since August 2022.
Thirty-four percent of the power requirement for January 2024 will come from WESM, 30 percent from IPPs and 36 percent from PSAs.
At the national level, the average power supply last month increased by 3.4 percent to 20,150 MW from 19,492 MW, while the average demand decreased by 2.8 percent to 13,275 MW from 13,659 MW, the Independent Electricity Market Operator of the Philippines said in a separate statement over the weekend.
The utility firm also made an appeal for consumers to stay diligent when it comes to energy-saving practices so they can better manage their consumption.
“While electricity rates decreased this month, we would like to remind our customers to continue practicing energy efficiency as a way of life, especially with the dry season fast approaching,” said Joe Zaldarriaga, Meralco vice president and head of corporate communications.
Its basic power saving tips include unplugging appliances when not in use, ironing large batches of clothing at a time, refraining from overfilling refrigerators, regular cleaning of air conditioner filters and using LED bulbs.
