The Manila Electric Co. (Meralco) announced today a decrease in its electricity rates worth P 0.5436 per kilowatt hour (kWh) for the month of May.
The adjustment this month brings the overall rate to P 10.0041 per kwh from April’s P 10.5477 per kwh, an equivalent to a decrease of around P 109 for the average household with 200 kwh consumption.
Charges from the Wholesale Electricity Spot Market (WESM) decreased by P 1.0139 per kwh, despite higher demand for power in the Luzon grid. Various power plants scheduled for maintenance shutdown have gone back online, resulting in lower WESM charges.
The share of WESM purchases to Meralco’s total requirement this month was 22 percent.
Cost of power from Independent Power Producers (IPPs) also went down by P 0.5920 per kwh due to Quezon Power’s return to normal operations from its scheduled maintenance. IPPs provided 45 percent of Meralco’s total energy requirement.
Purchases from Power Supply Agreements (PSAs) also increased by P 0.2096 per kwh due to scheduled maintenance outage of Pagbilao Unit 1 and Ilijan Unit 1 and the quarterly repricing of Malampaya natural gas. PSA purchases account for 33 percent of Meralco’s total requirement this month.
Transmission charges to residential customers slightly decreased by P 0.0096 per kwh. Taxes and other charges also went down by P 0.1128 per kwh for the month of May.
Meanwhile Meralco’s distribution, supply, and metering charges have remained unchanged for the 34 months.