While power consumption typically rises during the dry season, customers of the Manila Electric Company (Meralco) can expect some relief this May as the Manuel V. Pangilinan-led distribution utility announced a significant reduction of P0.75 per kWh in electricity rates.

The reduction brings down the overall rate for a typical household to P12.26 from P13.01 per kWh in April.

For households consuming 200 kWh, they will pay P150 less in their total electricity bill this month. Meanwhile, customers with a 300-kWh consumption will see a P225 reduction while those with 400 kWh and 500 kWh consumptions will see decreases of P300 and P375 in their electricity bills respectively.

Meralco vice president and head of Corporate Communications Joe R. Zaldarriaga said this month’s overall electricity rate reduction is due to lower generation and transmission charges.

“With power consumption typically increasing during the dry season, we hope that our customers will benefit from the lower electricity rate this month. Rest assured that Meralco continues to be committed in delivering reliable, stable, and continuous electricity service at the least cost possible to our customers,” Zaldarriaga said.

Lower pass-through charges pulled down overall rates

Driving the overall rate reduction this month are lower generation and transmission charges.

This month’s generation charge went down by P0.31 per kWh to P7.47 per kWh, primarily due to lower charges from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs).

WESM charges decreased by P1.14 per kWh as a result of the improved supply situation in the Luzon Grid while IPP charges went down by P0.96 per kWh because of higher average IPP dispatch and the appreciation of the Peso to its strongest level since December 2023, which affected around 97 percent of IPP costs that were dollar-denominated.

These reductions tempered the P0.19 per kWh increase in charges from Power Supply Agreements (PSAs), which in turn was due to lower PSA dispatch. The stronger Peso, affecting around 56 percent of PSA costs that were dollar-denominated, mitigated further increase in PSA rate.

WESM, IPPs, and PSAs accounted for 26 percent, 33 percent, and 41 percent respectively of Meralco’s total energy requirement for the period.

Also contributing to this month’s rate cut was the P0.2970 per kWh decrease in the transmission charge for residential customers. Other charges, including taxes, similarly registered a net decrease of P0.1385 per kWh.

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 Feed-in Tariff Allowance are all remitted to the government.

Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022. Customers also continue to benefit from the ongoing implementation of the distribution-related refund equivalent to around P0.20 per kWh for residential customers.

Electricity service during midterm elections generally stable

As a result of months-long preparations, Meralco reported that electricity service in the more than 3,000 polling and canvassing centers and other vital election sites during the 12 May elections was generally stable and there were no major service disruptions.

Meralco deployed nearly 3,000 crews and personnel, along with over 160 generator sets and more than 470 floodlights, in strategic locations throughout the Meralco franchise area last election day.

“Overall, the isolated and minor electricity service concerns were immediately resolved by our crews and did not cause any major delay in the voting process within our franchise area,” Zaldarriaga said.

Months before election day, Meralco inspected schools that will be used as polling precincts well ahead of the 12 May election and conducted maintenance and upgrading activities to make sure its distribution network and facilities are in good condition. It was also in active coordination with the Commission on Elections, Department of Energy, and other energy industry stakeholders to ensure readiness for the midterm polls.

Customers urged to continue practicing energy efficiency

As the dry season persists, Meralco also reminded its customers to continue practicing energy efficiency to better manage electricity consumption.

“While electricity rates went down this month, we would like to remind our customers to continue practicing energy efficiency to have better control over their electricity bills,” Zaldarriaga said.

Among the practical tips customers can practice are regular cleaning of air conditioner filters and electric fan blades, ironing clothes in bulk, refraining from overfilling refrigerators, and using LED bulbs for cost-saving lighting.

Meralco customers can also have better control of their monthly electricity bills with the help of the Meralco Appliance Calculator that provides information on the energy consumption of appliances and gadgets.