As the rainy season begins, customers of the Manila Electric Company (Meralco) will continue to benefit from lower power rates this June following the distribution utility’s announcement of another rate reduction equivalent to P0.1076 per kWh.
This marks the second straight month of power rate reductions for Meralco customers, with the overall rate for a typical household down to P12.1552 from P12.2628 per kWh in May. Last month, the Manuel V. Pangilinan-led company also announced a significant power rate cut of P0.7499 per kWh.
“Our customers will continue to benefit from lower power rates this month mainly due to lower generation charges. A typical household consuming 200 kWh will see a decrease of around P22 in their total electricity bill for June,” Meralco vice president and head of Corporate Communications Joe R. Zaldarriaga said.
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.
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.
Meralco’s distribution charge, meanwhile, has remained unchanged since it was reduced by P0.0360 per kWh for typical residential customers in August 2022.
Customers also continue to benefit from the ongoing implementation of the distribution-related true-up adjustment, equivalent to a reduction of P0.2024 per kWh for residential customers.
Meralco also reminded its qualified customers anew to apply for available subsidy mechanisms namely the lifeline rate program and/or the senior citizen discount.
“We encourage our qualified customers to apply for inclusion in available subsidy programs so they can avail of the discounts on their electricity bills. They can visit the nearest Meralco Business Center to apply,” Zaldarriaga said.
Beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) and other marginalized households with certification from their local Social Welfare and Development Office (SWDO) can apply for inclusion in the lifeline rate program to receive discounts on their electricity bills. Only customers with approved applications can receive the Lifeline Rate.
Meanwhile, Filipinos aged 60 and above can also apply for the senior citizen discount to get a 5 percent reduction on certain components of their Meralco bill. The lifeline rate and senior citizen discount will continue to apply to the bills of qualified customers, provided their monthly consumption does not exceed 100 kWh.
With the onset of the rainy season, Meralco reminded its customers to practice electrical safety to avoid possible accidents especially when there is flooding.
“We remind our customers to prioritize safety this rainy season. Simple precautions can spell a big difference between safety and danger,” Zaldarriaga said.
Zaldarriaga also advised customers to continue practicing the following electrical safety measures which are very important especially when there is flooding:
Ensure that the main electrical power switch or circuit breaker is off.
Unplug appliances from wall sockets. Turn off permanently connected equipment and unscrew all light bulbs if possible.
Always make sure your hands are dry before handling electrical equipment or facilities.
Remove mud and dirt from service equipment or main circuit breaker/fuse and its enclosure using rubber gloves and rubber-soled shoes.
Make sure that all electrical wires, connectors and other wiring devices are completely dry.
Once all electrical wires and accessories are clean and dry, have a licensed electrician inspect the entire wiring system and appliances before using them. Do not attempt to turn on electrical appliances that may have been damaged by flooding.