MERALCO to lower power rates in July

MERALCO power lines

The Manila Electric Company (MERALCO) has announced a decrease in electricity rates this July of Php 0.7213 per kilowatt-hour (kWh), bringing the total cost for an average household to Php 11.1899 per kWh from Php 11.9112 per kWh in June. 

Residential customers who consume around 200 kWh per month will see a savings of about Php 144 in their overall electricity bill for July. 

In July, the generation charges experienced a significant decrease from Php 7.2502 per kWh in June to Php 6.066 per kWh. 

With the start of the rainy season, demand reduced and prices on the Wholesale Electricity Spot Market (WESM) decreased by Php 2.6597 per kWh. The reduced spot market prices resulted in a decrease in the application of the secondary price cap, which was imposed for only 9.21% of the time compared to the previous 28.28%. Additionally, the WESM share saw an increase in June, accounting for 15% of MERALCO’s overall energy requirement.

Due to lower coal prices, Independent Power Producer (IPP) and Power Supply Agreement (PSA) fees decreased by Php 0.4658 per kWh and Php 0.3915 per kWh, respectively. The rise of the peso also had an impact on costs, affecting 97% of IPP costs and 20% of PSA expenditures. IPP held 37% of the overall share during this time, while PSA held 48% of it. 

A net reduction of Php 0.0777 per kWh was also recorded for transmission and other fees, which include taxes and subsidies. 

As for the Feed-In Tariff Allowance (FIT-All), its collection remains suspended until the billing month of August, as per the Energy Regulatory Commission (ERC). 

In response to the revised guidelines for the Lifeline Rate Program, the energy company is supporting the Department of Energy (DOE) and the ERC appeal for eligible customers to apply and benefit from the discount.

Those who have earned certification from their local social welfare and development office as members of the marginalized sector or Pantawid ng Pamilyang Pilipino Program (4Ps) recipients are eligible to apply for the program.