Meralco slashes power rates

Customers of the Manila Electric Co. (Meralco), the country’s biggest power distributor, can expect their power bills to go down this month as the generation charge fell by 24 centavos per kilowatt-hour to P5.298 per kWh.

This meant that households consuming 100 kWh a month can expect a decrease of P24 in their electricity bills, while those that use 200 kWh a month will enjoy a P48-reduction for July. Households that use up 300 kWh monthly can also expect a decrease of P72.

In a statement, Meralco said that the drop in the generation charge was primarily due to lower prices at the wholesale electricity spot market (WESM) and from the independent power producers (IPPs).

WESM prices fell by P1.51 per kWh to P8.41 per kWh for the supply month of June from P9.92 per kWh the previous month.

The IPPs likewise, registered a decline of 3.35 centavos due to slightly improved dispatch levels and lower coal prices. These facilities remained to be the company’s cheapest source of electricity.

The distribution utility currently buys from three IPPs—Quezon Power Philippines Ltd.’s coal-fired facility, the 1,000-megawatt Sta. Rita and the 500-MW San Lorenzo natural gas-fired power plants, which are both owned by the Lopez-led First Gas Holdings.