Good news: Expect lower electricity prices from Meralco this holiday season

(Philstar.com) - December 17, 2020 - 9:49am
https://www.philstar.com/business/biz-memos/2020/12/17/2064248/good-news-expect-lower-electricity-prices-meralco-holiday-season

MANILA, Philippines — The Manila Electric Company (Meralco) announced today another downward adjustment of power rates as the overall rate for a typical household decreased by P0.0352 per kWh, from last month’s P8.5105 per kWh to P8.4753 per kWh this December.

This is equivalent to a decrease of around P7 in the total bill of residential customers consuming 200kWh.

This month’s overall rate is also a net rate reduction of P1.3870 per kWh, equivalent to bill reduction of more than P277 for a 200kWh household, since the start of the year. This is the second lowest overall power rate since September 2017.

Lower generation charge
From P4.2018 per kWh in November, the generation charge decreased by P0.0502 per kWh to P4.1516 per kWh this December. All sources of supply registered lower charges this month.

Meralco said there was a P0.1881 per kWh reduction in charges from the Wholesale Electricity Spot Market (WESM). The Luzon grid’s power supply situation improved in November following a drop in demand which decreased due to successive weather disturbances.

From October’s peak demand of 10,344 MW, November 2020 peak demand decreased to 9,886 MW. Also, due to the effects of Typhoon Ulysses, the WESM was suspended by ERC from November 12 to 13.

The cost of power from the Independent Power Producers (IPPs) also decreased by P0.2577 per kWh due to improved average plant dispatch and Peso appreciation. Charges from Power Supply Agreements (PSAs) also went down by P0.0214 per kWh with the strengthening of Peso against the US Dollar.

WESM, IPPs and PSAs accounted for 9%, 39% and 52% of Meralco’s energy requirements, respectively.

Movements in other charges
Transmission charge for residential customers registered a slight reduction of P0.0044 per kWh due to lower Power Delivery and Ancillary Service Charges. Meanwhile, taxes and other charges registered a net increase of P0.0194 per kWh.

Collection of the Universal Charge-Environmental Charge amounting to P0.0025 per kWh remains suspended, as directed by the ERC.

Meralco's distribution, supply, and metering charges, meanwhile, have remained unchanged for 65 months, after these registered reductions in July 2015.

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

Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the Universal Charges and the FIT-All are remitted to the government.


Continued service during GCQ
Customers may visit their nearest Meralco Business Center, which will continue to open its doors during General Community Quarantine (GCQ), and accept service applications, payments and other transactions.

Strict safety measures continue to be implemented, like the “No Mask, No Entry” rule, social distancing and temperature check.

Frontliners are available and ready, but strictly follow social distancing guidelines. Customers are rest assured that these frontliners have passed the rapid COVID-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in the Meralco branches to protect both the customer and the frontliner.

For maximum safety and convenience, Meralco still encourages customers to use Meralco Online to transact from the safety of their homes.

Multiple options for transactions have also been offered by the distribution utility, including the Meralco Mobile App via https://onelink.to/meralcomobile, Meralco Online via www.Meralco.com.ph, and the Meralco authorized payment channels at bit.ly/MeralcoPaymentPartners.