For households consuming 300 kWh, the reduction means they will pay P32 less in their total electricity bill this month. Meanwhile, customers consuming 400 kWh will see a P43 reduction in their electricity bill, while those using 500 kWh can expect a P54 decrease.
Lower generation charge drives overall rate decrease, offsets increase in transmission charge
Driving this month’s overall rate reduction is the lower generation charge, which went down by P0.1099 per kWh to P7.3552 per kWh, primarily due to lower charges from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM).
Charges from PSAs and IPPs decreased by P0.3699 and P0.1034 per kWh, respectively, due to lower fuel costs and higher average dispatch.
WESM charges also decreased by P0.6342 per kWh as a result of the improved supply situation in the Luzon grid for the May supply. The 533 MW reduction in average capacity on outage offset the increase in average demand of about 527 MW.
PSAs, IPPs and WESM accounted for 48 percent, 33 percent, and 18 percent, respectively of Meralco’s total energy requirement for the period.
This month’s drop in the generation charge offset the increase in transmission charges, which rose by P0.0214 per kWh due to higher ancillary service fees from the National Grid Corporation of the Philippines’ (NGCP) procurement agreements and reserve market.
Other charges, including taxes, registered a net decrease of P0.0191 per kWh.
Pass-through charges for generation and transmission are collected by Meralco on behalf of power suppliers and the grid operator, while taxes, universal charges, and the Feed-in Tariff Allowance go directly to the government.