Meralco power rates down in February

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The Manila Electric Company (MERALCO) announced today a downward adjustment of power rates as the overall rate for a typical household decreased by P0.0704 per kWh, from last month’s P8.7497 per kWh to P8.6793 per kWh this February. This is equivalent to a decrease of around P14 in the total bill of residential customers consuming 200 kWh.

This month’s overall rate is also P0.1830 per kWh lower than February 2020’s rate of P8.8623 per kWh.

This month’s rate still includes the ERC-approved adjustments for MERALCO’s pass-through over/under-recoveries for the period January 2017 to December 2019. In an Order released 29 December 2020, ERC directed MERALCO to refund over-recoveries in transmission and other charges over a period of approximately three (3) months until fully refunded and to collect an under-recovery in the generation rate for approximately twenty-four (24) months until fully collected. MERALCO implemented the ERC-approved adjustments starting January 2021 billing.  The initial impact to residential customers is a net refund of around P0.1150 per kWh.

Overall rate decrease mainly brought about by lower generation charge

February 2021 generation charge is P4.4152 per kWh, P0.0422 lower than January’s generation charge of P4.4574 per kWh. This month’s generation charge is also lower than last year’s rate of P4.5090 per kWh.

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The reduction in generation charge this month is due to lower fixed charges from the Power Supply Agreements (PSA). Meanwhile, Independent Power Producers (IPP) rates increased by P0.2103 per kWh due to lower average plant dispatch, higher Malampaya natural gas prices due to the quarterly repricing, and Peso depreciation. Wholesale Electricity Spot Market (WESM) rates also increased by P0.9577 per kWh due to higher average plant capacity on outage in the Luzon grid.

PSAs, IPPs, and WESM provided 53.4%, 39.5%, and 7.1% of Meralco’s energy requirements, respectively.

Movements in Other Charges

Transmission charge for residential customers also registered a reduction of P0.0128 per kWh due to lower Ancillary Service charges while taxes and other charges also registered a net decrease of P0.0154 per kWh.

Meanwhile, 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 67 months, after these registered reductions in July 2015. MERALCO 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.

MERALCO continues to serve during General Community Quarantine (GCQ)

Customers may visit their nearest Meralco Business Center, which will continue to open its doors during the 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. Visitors can 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.

But, 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.

For more information and concerns, customers may visit MERALCO’s website at www.MERALCO.com.ph, its social media accounts, Twitter @MERALCO and Facebook at www.facebook.com/MERALCO or may also call the MERALCO Hotline at 16211.

 

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