Electricity users across the franchise area of the Manila Electric Co., or Meralco, could slightly save on their electricity bills this March if the anticipated drop in generation charges manages to pull down overall rates.

Meralco vice president and head of corporate communications Joe Zaldarriaga said on Wednesday that initial indications point to a decline in generation charges.

“While we have yet to receive all the billings from our suppliers… We are hoping that this reduction in the generation charge will be able to temper the anticipated increase in transmission charge due to higher ancillary service charges,” Zaldarriaga said in a text message.

Zaldarriaga explained that generation charges may ease due to the resumption of operations of the San Buenaventura power plant after undergoing maintenance, coupled with lower spot market prices due to improved supply situation in the Luzon grid.

Gas rates refund

Likewise, the reduction can also be affected by the refund of incremental gas charges under the new Gas Sale and Purchase Agreements as recently directed by the Energy Regulatory Commission.

In February, Meralco customers paid an additional 57 centavos for every kilowatt-hour, or kWh, of their electricity consumption after the overall rate clocked in at P11.92 per kWh from P11.34 per kWh in January.

For residential users consuming 200 kWh, the adjustment translated to an increase of around P115 in their total electricity bill.