MERALCO rates down by Php 0.01/kWh in February

MERALCO power lines

The Manila Electric Co. (MERALCO) has announced a Php 0.0106 per kilowatt-hour (kWh) decrease in its February electricity bills, bringing the overall rate down to Php 10.8895/kWh from last month’s Php 10.9001/kWh. 

This is equivalent to a Php 2 decrease in the total electricity bill for a 200 kWh household. 

Generation charges decreased by Php 0.2137/kWh to Php 6.9154/kWh due to lower costs from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs) that offset the increase in Power Supply Agreement (PSAs) charges. 

WESM charges decreased by Php3.7370/kWh amid the improvement of the supply situation in the Luzon Grid with less generation capacity on outage, lower demand, and the absence of Yellow alerts. 

Charges from IPPs also decreased by Php0.2950/kWh as First Gas power plants reduced the use of expensive alternative fuel and lowered natural gas prices following the quarterly repricing of the Malampaya gas. The appreciation of the Philippine peso vs. US Dollar also contributed to the reduction. 

However, PSA charges increased by Php 0.7970/kWh due to lower average plant dispatch. MERALCO’s 670 MW supply agreement with South Premiere Power Corporation (SPPC) remains suspended following the writ of preliminary injunction issued by the Court of Appeals

The overall reduction in generation charges was offset by the completion of the third distribution-related refund, equivalent to Php 0.1923/kWh for residential consumers which is no longer reflected in the February billing. 

The remaining Php 0.8656/kWh distribution-related refund will be completed by May 2023. 

Following the ongoing maintenance shutdown of the Malampaya gas facility, MERALCO urged its customers to practice energy efficiency. Based on historical data, maintenance shutdowns of the facility often leads to higher rates. 

Earlier, MERALCO said that its franchise area may face a Php 0.7897/kWh increase following Malampaya’s maintenance shutdown scheduled from February 4 to 18.