Meralco customers are poised to see lower electricity rates in September after the distributor signalled a likely reduction in the generation charge, which is the largest component of the retail tariff.

“We are seeing a possible decrease in the overall electricity rate which we hope will help our customers,” Zaldarriaga said.

Meralco attributes the expected easing mainly to a stronger peso against the US dollar, which reduced dollar-denominated costs among its suppliers. That currency effect, the company says, was more than able to offset the cost recovery tied to San Miguel Global Power’s terminated contracts — the implementation of which the Energy Regulatory Commission (ERC) gave the go-signal for beginning this month.

“Overall, we are optimistic that the reduction in generation charge will be able to offset the increase in other bill components,” Zaldarriaga said.

What’s your take on this rate adjustment–a temporary relief or a sign of more stable power costs ahead? Join the discussion and share your insights.

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