Meralco’s April bill cut by almost P1/kWh

INQUIRER FILE PHOTO

MANILA, Philippines — Electricity consumers have gotten some relief as power distributor Manila Electric Co. (Meralco) announced a reduction of almost a peso per kilowatt-hour (kWh) in overall electricity rates this April due to lower generation and transmission charges.

In a statement on Monday, Meralco said this month’s electricity rate declined by P0.9879 per kWh to P10.9518 per kWh from P11.9397 per kWh.

The cut translates to a decrease of about P198 in the total electricity bill of residential customers with a consumption of 200 kWh.

“The substantial reduction in the overall electricity rate this month wiped out rate increases since January 2024, bringing the year-to-date adjustment to a net decrease of P0.3066 per kWh,” Meralco said in a statement on its biggest rate reduction so far this year.

READ: Meralco sees home power bills decreasing this month

Breakdown

Joe Zaldarriaga, vice president and head of the listed company’s corporate communications, also said, “The significant reduction in this month’s overall electricity rate more than wiped out the increases in power rates for the first quarter of the year.”

For the April billing period, the generation charge decreased by P0.3613 per kWh due to lower costs from independent power producers (IPPs) and power supply agreements (PSAs), offsetting higher Wholesale Electricity Spot Market (WESM) prices.

Charges from IPPs and PSAs dropped by P1.0701 per kWh and P0.5733 per kWh, respectively. However, WESM prices rose by P1.0114 per kWh on the back of tighter supply conditions in the Luzon grid.

The transmission charge went down by P0.4665 per kWh as the Energy Regulatory Commission suspended the billing and settlement in the reserves market, which led to a significant increase in ancillary service (power reserves) charges in March.

Taxes and other charges also registered a total decrease of P0.1601 per kWh, while the distribution charge remained unchanged since the P0.0360 per kWh decrease for the typical residential customer beginning August 2022.

Amid the hotter weather, Meralco has renewed calls for participation in the government’s Interruptible Load Program (ILP).

ILP is a voluntary and demand-side management program that allows big-load customers to use their generator sets to meet their electricity needs instead of linking to the power highway in the event of a supply shortage.

Meanwhile, President Marcos has expressed hope that the energization of the Cebu-Negros-Panay (CNP) backbone project of the National Grid Corporation of the Philippines (NGCP) will help resolve the power supply challenges in the region.

“I encourage private generators to invest in the Negros and Panay subgrids so that the region can meet its energy demands and ensure self-sufficiency in the long run,” the President said during Monday’s launching of the P67.98-billion CNP Backbone Project Stage 3 at the NGCP’s Bacolod substation.

Strategic locations

Mr. Marcos also urged all stakeholders in the Visayas to identify strategic locations that would host new baseload generation plants as well as renewable energy and energy storage systems.

“The northern part of Negros Island has close to 500 megawatts (MW) that’s stranded, so this transmission line will make that available to wherever else it is needed,” he said.

“Let us remain steadfast in our drive to ensure the timely completion of the remaining major transmission projects to bolster the stability of our power grid,” the President added.

CNP comprises 670 transmission towers spanning 442 circuit kilometers of overhead lines and 98.9 circuit kilometers of submarine cables, with 10 new substations and the expansion of two existing major substations.

The NGCP said the new transmission facility would increase power in Cebu, Negros and Panay from 180 MW to 490 MW.

Anthony Almeda, NGCP president, said the company had energized two earlier backbone projects such as the Hermosa-San Jose 500 kV Transmission Line in Luzon and the Mindanao-Visayas Interconnection Project.

“CNP strengthens the link between three major islands of the Visayas and will provide a more reliable [transmission] of power to support the fast-growing economies of the provinces [on] the islands of Cebu, Negros and Panay,” Almeda said. INQ