Lower electricity bills will be felt this January following a P52.6 centavo per kwh decrease in overall rates announced by the Manila Electric Co. (Meralco).
Overall rates for January went down to P8.7227 from last month’s P9.287.
This means that there would be a P105.21 reduction for a 200 kwh household, P157.81 for 300 kwh, P210.41 for 400 kwh, and P263 for 500 kwh.
The decrease was brought about by lower generation charges – which went down from P4.6045 per kwh to P4. 0768 per kwh – due to lower Power Supply Agreements (PSA) and Wholesale Electricity Spot Market (WESM) Charges.
Meanwhile, Transmission charges increased by P0.1168 per kwh because of higher NGCP ancillary service charges.
Meralco has also advised its customers of the possible upward adjustments in overall rates following the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) in February.
Based on estimates, a typical household (200 kwh) may pay P16.16 more on their electricity bills in February due to the TRAIN law.
An estimated increase of eight centavos per kwh is seen following the implementation of TRAIN. This is due to the coal excise tax and the value added tax (VAT) that will be imposed to the National Grid Corporation of the Philippines (NGCP).
“The total is eight centavos. That would be the full impact for Meralco customers this year,” Meralco head of utility economics Lawrence Fernandez said.