The Manila Electric Co. (MERALCO) has announced a Php0.2087 per kilowatt-hour (kWh) reduction in its electricity bills for the month of August.
This would bring the overall rate to Php9.5458 per kWh from last month’s Php9.7545 per kWh – which is equivalent to a Php42 decrease in a residential 200 kWh consumer.
Decrease in overall rates was brought about by the reduction in generation charges from power supply agreements (PSA) which was able to offset the increase in charges from independent power producers (IPPs) and the Wholesale Electricity Spot Market (WESM).
MERALCO’s overall rate was also pushed down by the refund order by the Energy Regulatory Commission (ERC), equivalent to a refund of Php1.8009 per kWh for residential consumers.
The company’s distribution charges also decreased by Php0.0360 per kWh for residential customers. This would be the first time MERALCO’s distribution charges had a price adjustment since July 2015.
The adjustment was due to the ERC order on MERALCO’s final interim average rate which reduced the final average distribution rate for the lapsed period of July 2015 to June 2022 from Php1.3810 per kWh to Php 1.3522 per kWh.