Improved supply situation causes decrease in Generation Charge
The Manila Electric Company (MERALCO) announced today a downward adjustment of power rates, as the overall rate for a typical household decreased by P0.0395 per kWh, from last month’s P8.5500 per kWh to P8.5105 per kWh this November. This is equivalent to a decrease of around P8 in the total bill of residential customers consuming 200 kWh.
This month’s overall rate is also a net rate reduction of P1.35 per kWh since the start of
the year and is the third-lowest overall power rate since September 2017.
Lower Generation Charge mainly brought about by the improved supply situation
From P4.2233 per kWh in October, the generation charge decreased by P0.0215 per kWh
to P4.2018 per kWh this November. This month’s decrease in the generation charge is mainly due to the P1.2800 per kWh reduction in charges from the Wholesale Electricity Spot Market (WESM). The Luzon grid’s power supply situation improved in October, as demand decreased due to weather disturbances and there was less generation capacity on outage.
Lower Malampaya natural gas prices due to its quarterly repricing and a slight Peso
appreciation resulted in the cost of power from the Independent Power Producers (IPPs)
to decrease by P0.0842 per kWh. Meanwhile, charges from Power Supply Agreements
(PSAs) inched up by P0.2118 per kWh partly due to the forced outage of San Gabriel
during the supply month.
WESM, IPPs, and PSAs accounted for 12%, 35%, and 53% of MERALCO’s energy
requirements, respectively.
Movements in Other Charges
Transmission charge, taxes, and other charges for residential customers also registered
a net reduction of P0.0180 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 64 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.
No disconnection until December 31, 2020, for consumers 200 kWh and below
Meralco assured its customers that it will fully comply with the ERC Advisory released last
October 29, 2020.
In line with the ERC Advisory, Meralco will NOT implement any disconnection on account
of non-payment of bills until December 31, 2020 for consumers with monthly consumption of 200 kWh and below.
For all other customers, consuming 201 kWh and up, Meralco will be complying with
ERC’s advisory stating that a minimum of 30-day grace period will be given on all
payments falling due within the period of Enhanced Community Quarantine (ECQ) and
Modified Enhanced Community Quarantine (MECQ), without incurring interests,
penalties, and other charges. Any unpaid balance after the lapse of the 30-day grace
period shall be payable in three (3) equal monthly installments without incurring interests,
penalties and other charges.
In accordance with the ERC Advisory, Meralco also encourages customers who have the
ability to pay to settle their bills within the original due date to help manage the cash flow
in the energy supply chain and ensure the continuous supply of electricity.
For more information, customers may refer to their November bill insert, accompanying
their November bill, for complete details.
MERALCO keeps its doors open for customers during General Community
Quarantine (GCQ)
Customers may visit the 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
