Manila Electric Company (Meralco) said electricity rates will go down this January, marking the second straight month of lower power rates for its customers.

In its January press conference, Meralco said overall rates dropped by PHP 0.1637 per kilowatt-hour (kWh), bringing the average rate for a typical household to PHP 12.9508 per kWh, from PHP 13.1145 per kWh in December.

“While there were upward pressures on certain cost components this January, overall electricity rates declined — for the second straight month. We hope that this development will bring relief to all our customers as we start another year,” said Joe R. Zaldarriaga, Meralco vice president and head of corporate communications.

For households that consume around 200 kWh a month, Meralco said this adjustment means their electricity bill will go down. “For our residential customers with a typical consumption of 200 kWh, the adjustment this month translates to a reduction of around PHP 33 in their total electricity bill,” Zaldarriaga said.

Meralco said the lower rates were mainly due to a drop in transmission charges, or the cost of moving electricity through power lines. These charges went down largely because of lower expenses incurred by the National Grid Corporation of the Philippines (NGCP), which operates the country’s transmission system and is responsible for keeping the power grid stable.

The generation charge also went down slightly. Meralco said this was partly due to lower prices in the Wholesale Electricity Spot Market (WESM), the trading market where electricity is bought and sold in real time, as well as lower charges from some power supply contracts. These were supported by improved supply conditions in the Luzon Grid, including lower electricity demand and fewer power plants on outage.

The company added that a reduction in taxes and other charges also helped pull rates down, offsetting the start of a new renewable energy charge called the Green Energy Auction Allowance (GEA-All). The GEA-All adds PHP 0.0371 per kWh as a separate line item on electricity bills and is meant to support renewable energy projects awarded under the government’s green energy auction program.

Separately, Meralco reminded the public about the dangers of stealing electrical facilities, following a recent incident in Quezon City that temporarily cut power to nearly 8,000 customers.

Meralco Senior Vice President and Head of Networks Froilan J. Savet warned that stealing power cables and other electrical equipment is dangerous and can lead to serious injuries or even death. He also said such acts are punishable under the Anti-Electricity Pilferage Act.

As electricity rates ease while safety risks remain, how can consumers better understand both the costs behind their power bills and the importance of protecting electrical facilities?

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