Manila Electric Company (Meralco) consumers will experience a decrease in their electricity rates with an initial estimate of around P0.40 to P0.50 per kilowatt-hour (kWh).
The main driver for the decrease for this billing cycle is the implementation of the P0.1731 per kWh reduction in the feed-in-tariff allowance (FIT-All) for renewable energy facilities. Adding to this is the stoppage of collection of the P0.05 per kWh universal charge for stranded contract cost (UC-SCC) of state-run Power Sector Assets and Liabilities Management Corporation, as reported in a Manila Bulletin article.
PSALM’s collection would already fully cover the P5.117 billion that the Energy Regulatory Commission (ERC) had allowed it to pass-on, according to PSALM President Irene Joy Garcia.
Wholesale Electricity Spot Market also charged lower due to cooler temperatures.
Meralco Spokesperson Joe Zaldarriaga said “power prices will go down this February,” The billing month’s tariff decrease “will likely be significant and will be on top of the ₱0.41 per kWh key reduction last January.”
Zaldarriaga confirmed that the FIT-All and universal charge are the main factors for the decrease, as well as the generation charge which estimatedly to decrease by around P0.30 per kWh.
“This is due to the new baseload PSAs (power supply agreements) with a total capacity of 1,200 megawatts that was signed after Meralco’s successful CSPs (competitive selection processes) last year,” Zaldarriaga explained.