The Manila Electric Company (Meralco) confirmed a decrease of PHP0.1852 per kWh in September electricity rates, bringing the overall household rate down to PHP13.0851 per kWh from last month’s PHP13.2703 per kWh. This means that residential users who consume 200 kWh will see a PHP37 reduction on their monthly bill.

Meralco had earlier signaled a likely reduction in rates, citing a stronger peso that offset the impact of cost recoveries from San Miguel Global Power’s terminated contracts. The latest figures from the utility detail how this played out.

The generation charge dropped by PHP0.2603 per kWh, driven mainly by lower charges from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs), which declined by PHP1.3459 and PHP0.3660 per kWh, respectively. Around 99% of IPP costs and 57% of PSA costs were dollar-denominated, and thus benefited from the peso’s appreciation.

These reductions outweighed higher charges from the Wholesale Electricity Spot Market (WESM), which rose by PHP0.3785 per kWh amid increased demand and more plant outages. Also factored in this month is the start of collecting contract price adjustments for Sual Power, Inc. (SPI) and South Premiere Power Corporation (SPPC). Following a Supreme Court ruling upholding their “Change in Circumstance” clause, the Energy Regulatory Commission (ERC) approved a total recovery of PHP5.1 billion to be collected over six months, or about PHP0.26 per kWh for September.

For this period, Meralco sourced 65% of its energy from PSAs, 29% from IPPs, and 6% from WESM.

Other bill components also moved this month. The transmission charge increased by PHP0.1130 due to higher ancillary service costs, while taxes and other charges registered a net decrease of PHP0.0379 per kWh. Meralco’s distribution charge remains unchanged, with customers continuing to benefit from the ongoing true-up adjustment of PHP0.2024 per kWh.

Beyond billing, Meralco reminded customers to observe electrical safety during flooding and shared energy efficiency tips such as cleaning air conditioner filters, ironing clothes in bulk, avoiding overfilled refrigerators, and using LED bulbs. 

“Along with relatively lower consumption during this period, this rate cut will bring relief to our customers,” said Joe R. Zaldarriaga, Meralco Vice President and Head of Corporate Communications.

Do you think these bill reductions will provide lasting relief for households, or will power costs remain volatile in the coming months?

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