Meralco rates dip slightly in September despite higher generation costs

For a household consuming 200 kWh, that translates to savings of about P8 on the monthly electricity bill

MANILA, Philippines – Meralco customers will see another slight reduction in electricity rates in September, although an increase in generation costs limits the savings for households.

The Manila Electric Company (Meralco) said on Friday, September 11, that its overall rate for a typical residential customer will decline by P0.0409 per kilowatt-hour (kWh), to P14.7424 per kWh from P14.7833 in August.

For a household consuming 200 kWh, that translates to savings of about P8 on the monthly electricity bill.

The decrease came despite the generation charge rising by P0.4232 per kWh, which Meralco attributed mainly to the weaker peso and higher fuel costs amid renewed conflict in the Middle East. (READ: Cheaper PH electricity? Go beyond system loss; fix costly power contracts)

Those increases were more than offset by cheaper ancillary services and lower taxes. Ancillary service charges collected by the National Grid Corporation of the Philippines fell by P0.3344 per kWh as Reserve Market charges declined, while taxes and other charges dropped by a net P0.1657 per kWh.

Meralco said lower taxes were partly due to the completion of the Malampaya gas facility’s maintenance shutdown, allowing First Gas and Prime CoreGen plants to again use more indigenous natural gas, which is exempt from value-added tax. (READ: VAT on system loss may be removed by November – ERC)

The utility is also continuing two previously approved refunds equivalent to a combined P1.0139 per kWh for residential customers. These refunds were already reflected in August bills.

September marks the second consecutive monthly rate reduction after Meralco cut its rate by P0.0428 per kWh in August. – Rappler.com