Meralco rates down in May

Meralco rates lower by P.29/kwh in May

The Manila Electric Company (Meralco) has announced an overall decrease of ₱0.2483 per kilowatt-hour (kwh) for May.

A typical household consuming 200 kWh will have a total reduction of P50 in their bills, according to a report.

The decrease was mainly driven by the lower generation charge for this month which was at ₱4.3848 per kwh compared to last month’s ₱4.6385 per kwh.  This had been lower by ₱0.2537 per kwh.

The price reduction was also due to Meralco’s invocation of the force majeure provision in its power supply agreements (PSAs) that had “reduced fixed charges for generation capacity that would have been charged by suppliers.”

The power utility firm’s force majeure claims totalled to ₱877 million, which means a reduction of ₱0.3452 per kWh as passed on to its customers.

In addition, Meralco noted that the Energy Regulatory Commission’s directive to suspend the collection of feed-in-tariff allowance (FIT-All) charges for renewable energy capacities also cushioned the rates in May’s billing cycle.

“There was no movement for the FIT-All for May as the ERC ordered another month of deferral of the FIT-All in consideration of the current ECQ,” Meralco said in its statement.

 

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