Households consuming 200 kilowatt-hour (kWh) will save around PHP 22 this month as Manila Electric Company (Meralco) cuts rates anew, following a sharp drop in generation charges. This is the second consecutive month that the giant distribution utility firm slashed its rates, greatly benefiting its customers. 

In a press briefing on Wednesday, Meralco stated that the overall rate for residential customers has dropped by PHP0.1076 per kilowatt-hour (kWh), bringing the June rate to PHP12.1552 from PHP12.2628 in May. 

“This month’s reduction is mainly driven by a lower generation charge,” said Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga.

Generation charge dropped by PHP 0.1099 to PHP 7.3552 per kWh due to cheaper costs from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM).

PSA charges dropped by PHP0.3699/kWh, while IPP costs fell by PHP0.1034/kWh. WESM rates also posted a notable decline of PHP0.6342/kWh, aided by an improved power supply situation in the Luzon grid. The 533 MW decrease in average capacity on outage helped offset a corresponding rise in demand of about 527 MW.

While generation charges fell, the transmission charge conversely increased slightly by PHP0.0214/kWh due to higher ancillary service charges from the National Grid Corporation of the Philippines (NGCP). This was offset by a PHP0.0191/kWh decrease in taxes and other pass-through charges.

Meralco clarified that its distribution charge has remained unchanged since a PHP0.0360/kWh reduction implemented in August 2022. Customers also continue to benefit from a true-up adjustment of PHP0.2024/kWh under distribution-related mechanisms.

Meanwhile, Meralco once again urged qualified low-income customers to apply for the Lifeline Rate Program, which offers bill discounts to beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) and other marginalized households certified by local social welfare offices.

Only customers with approved applications can receive the subsidy. Officials noted that while past rules automatically enrolled some consumers, recent eligibility requirements have narrowed the coverage. This can potentially reduce enrollment to less than 10% of Meralco’s 8 million customers.

Senior citizens are also encouraged to apply for a 5% discount on specific bill components, provided their monthly usage does not exceed 100 kWh and they submit required documentation such as a valid ID, a recent Meralco bill, and a barangay certificate.

When asked about the trend of spot market prices in the coming months, Meralco Vice President and Head of Utility Economics Larry Fernandez explained that the rainy season may reduce electricity demand, which could lower prices. However, he cautioned that planned maintenance shutdowns, which are allowed during this season, may reduce supply and exert upward pressure on rates.

“Spot market prices are determined by supply and demand,” Fernandez noted. “While demand usually drops with cooler weather, any reduction in supply due to maintenance may offset this.”

Meralco also assured the public of its readiness for potential storm-related outages. The company highlighted ongoing investments in distribution system upgrades and rapid deployment teams, as part of its rainy season preparedness.

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