Meralco implements back-to-back rate reductions, provides aid for habagat victims
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Manila Electric Co. (Meralco) customers will see lower electricity bills for the second consecutive month, with the utility announcing a rate reduction of P0.0409 per kilowatt-hour for September.
The adjustment brings the overall rate for a typical household down to P14.7424 per kWh this month from P14.7833 in August.
"For residential customers of Meralco who are consuming 200 kWh, this adjustment translates to a reduction of around P8 in the total electricity bill," said Joe R. Zaldarriaga, Meralco vice president and head of corporate communications.
"This follows a rate decrease Meralco implemented last month, and we hope that this will somehow provide relief to our customers."
The overall rate reduction was primarily driven by lower ancillary service charges and taxes, which offset a hike in generation costs.
Ancillary service charges collected by the National Grid Corp. of the Philippines dropped by P0.3344 per kWh due to lower costs from the Reserve Market.
Taxes and other charges registered a net decrease of P0.1657 per kWh, largely aided by the completion of the Malampaya gas facility's maintenance shutdown.
The resumption allowed First Gas and Prime CoreGen plants to fully utilize indigenous natural gas, which is exempt from value-added tax.
These reductions offset a P0.4232 per kWh increase in the generation charge. The hike stemmed from the depreciation of the Philippine peso and higher fuel costs amid escalating conflicts in the Middle East, though it was tempered by lower Wholesale Electricity Spot Market charges as Luzon grid demand fell by about 1,200 megawatts due to weather conditions.
For the billing period, Power Supply Agreements, First Gas and Prime CoreGen plants, and WESM accounted for 71 percent, 24 percent and 4 percent, respectively, of Meralco's total supply requirements.
Residential customers also continue to benefit from two simultaneous refunds totaling P1.0139 per kWh. Meralco noted that pass-through charges for generation, transmission, and ancillary services are paid directly to power suppliers and the NGCP, while taxes and universal charges are remitted to the government.
Meralco's actual distribution charge has remained unchanged since August 2022.
In addition to rate adjustments, Meralco—through its corporate social development arm, One Meralco Foundation—has mobilized relief efforts for areas affected by the southwest monsoon.
Since early August, the foundation has aided more than 5,000 families across Metro Manila, Bulacan, Cavite, Rizal, Nueva Ecija, and Pampanga while reminding the public to observe electrical safety during floods.
