The reduced charges in the Wholesale Electricity Spot Market (WESM) due to lower demand are expected to break the power rates hike that Manila Electric Co. (Meralco) customers endured in the past three months.
Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said on Tuesday that initial indications for the October billing suggest a potential reduction in electricity rates.
“Initial indication shows a possible decrease in the generation charge in the October billing. This is primarily driven by lower WESM charges as prices went down due to reduced demand brought about by cooler temperatures in the September supply month,” Zaldarriaga said in a text message.
“Also contributing to this is the end of the collection of the deferred May 2024 WESM costs last month,” he added.
Last month, Meralco customers saw their household electricity rates rise to P11.79 per kilowatt-hour (kWh) for the third straight month. The adjustment was an increase from P11.63 per kWh in August.
As a result, customers with a minimum of 200 kWh of electricity consumption paid an additional P31 in their monthly bills.
The price hike was primarily due to a 29-centavo increase in the transmission charge for residential customers, caused by higher ancillary service fees.