Meralco trims January rates, households save P33 on average

Manila Electric Company (Meralco) is cutting electricity rates for the second consecutive month, lowering the overall cost for a typical household by P0.1637 per kilowatt-hour (kWh) to P12.9508 this January. 

For a household consuming 200 kWh, the adjustment translates to roughly P33 in monthly savings.

“While there were upward pressures on certain cost components this January, overall electricity rates declined — for the second straight month. 

We hope that this development will bring relief to all our customers as we start another year,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said at a media briefing on Monday. 

The decline is largely driven by a P0.10 per kWh drop in the residential transmission rate to P1.0368, reflecting lower ancillary service costs from the National Grid Corp. of the Philippines.

Generation charges also fell by P0.0171 per kWh, as rates from the Wholesale Electricity Spot Market (WESM) and Power Supply Agreements (PSAs) eased.

WESM charges fell due to improved supply in the Luzon grid, while PSA rates decreased after the San Buenaventura Power plant resumed operations following a scheduled outage. 

Some costs from Independent Power Producers rose due to higher fixed fees and the peso’s depreciation against the US dollar, though these were offset by reductions in taxes and other pass-through charges, which fell by P0.0837 per kWh.

The decreases helped offset the introduction of the Green Energy Auction Allowance this month, a P0.0371 per kWh levy intended to fund renewable energy plants as mandated by the Energy Regulatory Commission.

Meralco also warned the public about the dangers of stealing power cables and other electrical facilities following a recent incident in Quezon City that disrupted service to nearly 8,000 customers. 

“This incident underscores the grave dangers of stealing power cables and electrical facilities. Beyond the inconvenience caused by service interruptions, these acts pose life-threatening risks,” said Meralco Senior Vice President and Head of Networks Froilan J. Savet.

Last year, Meralco recorded 285 theft incidents involving electrical facilities, four of which resulted in injuries. 

Tampering with power infrastructure remains punishable under the Anti-Electricity Pilferage Act.