Manila Electric Co. (Meralco) has announced on Thursday, June 7, a decrease of P0.1252 per kilowatt-hour (kWh) in the overall electricity rates for a typical household in June, despite expectations that power costs will rise this month.
In a statement, the power distribution utility said the lower rate was mainly because of the decrease in the generation and transmission charges amounting to P0.1556 per kWh. The drop drop more than offset a P0.0733 per kWh increase in the feed-in tariff allowance, or FiT-All.
“This is the second consecutive month of overall rate decrease,” the listed company said.
It said the adjustment would bring down the the overall rate to P9.8789 per kWh from May’s P10.0041 per kWh. The lower rate is equivalent to a decrease of around P25 in the bill of a residential customer consuming 200 kWh.
The corresponding decrease for the 300 kWh, 400 kWh and 500-kWh customers are P37.56, P50.08 and P62.60, respectively.
Meralco said the lower cost of power from its power supply agreements (PSA) largely brought down the generation charge for the month.
It said from P5.0523 per kWh in May, the generation charge for June will go down to P4.9828 per kWh.
Of Meralco’s total requirement this month, PSA purchases accounted for 45%. The payment for the generation charge by electricity users goes to the power suppliers. — Victor V. Saulon

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