The Manila Electric Company (MERALCO) is cutting power rates for its consumers by Php0.0395 per kilowatt hour (kWh) to Php8.5105/kWh effective today from Php8.55/kWh in October.
The lower electricity rate comes as a result of lower generation charges due to improved power supply and reductions in other charges.
The generation charge, which forms the main part of the overall bill, went down by Php0.0215/kWh to Php4.2018/kWh this November from Php4.2233/kWh in October due to reduced charges in the Wholesale Electricity Spot Market (WESM). Demand also decreased as power outages, especially in Luzon, caused lesser power generation.
Costs from independent power producers (IPPs) decreased by Php0.0842/kWh due to the peso’s slight appreciation, while charges from power supply agreements (PSAs) increased by Php0.2118/kWh due to the forced outage of the San Gabriel Combined Cycle Plant in Batangas last September.
WESM, IPPs, and PSAs account for 12%, 35%, and 53% of MERALCO’s supply requirements, respectively.