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MANILA 9th August 2023 –After the decrease in the July 2023 billing, the Manila Electric Company (Meralco) announced today, Wednesday, another reduction of Php0.2908 per kWh in the electricity rate this August, bringing down the overall rate for a typical household to Php10.8991 per kWh from Php11.1899 per kWh previously.
For residential customers consuming 200 kWh, the adjustment is equivalent to a decrease of around Php58 in their total electricity bill.
With the latest adjustment, the combined reduction over the past two months now stands at Php1.0121 per kWh.
Overall rate decrease due to lower generation charge
The generation charge registered its third consecutive reduction this month, as it went down by Php0.2137 to Php6.3929 per kWh from Php6.6066 per kWh in July.
Charges from the Wholesale Electricity Spot Market (WESM) dropped by Php1.2873 per kWh as average demand in the Luzon grid fell by more than 200 MW due to the rainy season. The decrease in spot market prices also reduced the imposition of the secondary price cap to 2.41% of the time in the July supply month from 9.21% in the previous month. Meralco sourced around 17% of its total energy requirement from WESM during the period.
Charges from Power Supply Agreements (PSAs) also went down by Php0.1688 per kWh due to lower fuel prices and the Peso’s appreciation which affected around 26% of PSA charges that are dollar denominated.
The reductions in WESM and PSA charges offset a slight Php0.0853 per kWh increase in charges from Independent Power Producers (IPPs), due to lower average IPP dispatch as several units of First Gas-Sta Rita and First Gas-San Lorenzo underwent scheduled outage during the July supply month. Mitigating the impact of reduced dispatch was the decrease in the price of Malampaya natural gas following its quarterly repricing, and the Peso appreciation that affected around 97% of dollar-denominated IPP charges.
PSAs accounted for 47% of Meralco’s total energy requirement for this period, while IPPs covered the remaining 36%.
Transmission and other charges
Transmission and other charges, which include taxes and subsidies, also registered a net reduction of Php0.0771.
Collection of the Feed-In Tariff Allowance (FIT-All), at the rate of Php0.0364 per kWh, remains suspended until this August 2023 billing month as directed by the Energy Regulatory Commission.
Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively; while taxes, universal charges, and FIT-All are all remitted to the government.
Meralco’s distribution charge, meanwhile, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022.
Meralco reminds customers to apply for lifeline discount
Following the new rules for the implementation of the lifeline rate program, Meralco reminds its qualified customers, particularly beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) and other marginalized households, to apply for the program to get discounts on their electricity bills.
Starting September 2023, only customers with approved applications will continue to benefit from the lifeline rate discount in accordance with the implementing rules and regulations of Republic Act No. 11552 or the law extending and enhancing the implementation of the lifeline rate.
To encourage more customers to apply, Meralco has been conducting barangay caravans and on-site applications. Eligible customers can also apply by visiting the nearest Meralco Business Center together with their completed application form, latest electricity bill, and 4Ps ID. For non-4Ps beneficiaries, a local social welfare and development office certification, and government ID are needed. Applicants can also take advantage of the dedicated lanes for the lifeline rate program applications.
For more information on the lifeline rate program, customers can visit the Meralco website (www.meralco.com.ph) and official social media accounts on Facebook (www.facebook.com/meralco) and Twitter (@meralco). (✓)
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For other concerns, customers can also report via text to 0920-9716211 or 0917-5516211, or contact the Meralco Hotline at 16211 and 8631-1111.