MORE THAN eight million customers of Manila Electric Co. (Meralco) will see slightly lower electricity bills this month after the power distributor reduced its overall rate as lower ancillary service charges and taxes offset higher generation costs.
In a statement on Friday, Meralco said its overall rate declined by P0.0409 per kilowatt-hour (kWh) to P14.7424 in September from P14.7833 per kWh in August.
The adjustment translates to a P8 reduction in the monthly bill of a household consuming 200 kWh. Customers consuming 300 kWh, 400 kWh, and 500 kWh will see their bills fall by P12, P16, and P20, respectively.
“This follows a rate decrease Meralco implemented last month, and we hope that this will somehow provide relief to our customers,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said.
Meralco attributed the decline mainly to lower ancillary service charges collected by the National Grid Corp. of the Philippines (NGCP) and lower taxes.
Ancillary service charges, or the cost of procuring power reserves to maintain balance in the power grid, fell by P0.3344 per kWh due to lower charges from the reserve market.
Taxes and other charges posted a net decrease of P0.1657 per kWh.
The lower overall rate came despite a P0.4232-per-kWh increase in the generation charge, which Meralco attributed mainly to the weaker peso and higher fuel costs following the recent escalation of the conflict in the Middle East.
On Aug. 28, the peso weakened by P1.025 to close at P62.265 against the dollar from P61.24 on July 31, according to data from the Bankers Association of the Philippines.
The increase in the generation charge was partly offset by lower charges from the Wholesale Electricity Spot Market (WESM), which Meralco attributed to weaker demand in the Luzon grid.
Two refunds being implemented by Meralco totaled P1.0139 per kWh.
Meralco’s distribution charge, meanwhile, has remained unchanged since a P0.0360-per-kWh reduction for a typical residential customer took effect in August 2022.
Meralco is the country’s largest private electric distribution utility, serving more than 8.2 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of MediaQuest Holdings, Inc., which is a subsidiary of the PLDT Beneficial Trust Fund, has an interest in BusinessWorld through the Philippine Star Group, which MediaQuest controls. — Sheldeen Joy Talavera
