July 2023 Rates Updates
The Manila Electric Company (Meralco) announced today a reduction of P0.7213 per kWh in the electricity rate this July, bringing down the overall rate for a typical household to P11.1899 per kWh from June’s P11.9112 per kWh.
For residential customers consuming 200 kWh, the adjustment is equivalent to a decrease of around P144 in their total electricity bill.
Lower generation charge triggered rate cut
For the second straight month, the generation charge went down, dropping by P0.6436 per kWh to P6.6066 per kWh this July from P7.2502 per kWh in June.
Charges from the Wholesale Electricity Spot Market (WESM) went down by P2.6597 per kWh as demand decreased amid the onset the rainy season. Lower spot market prices reduced the imposition of the secondary price cap to only 9.21% of the time from 28.28%. WESM share was higher this June supply month, accounting for around 15% of Meralco’s total energy requirement.
Charges from Power Supply Agreements (PSAs) and Independent Power Producers also went down by P0.3915 and P0.4658 per kWh, respectively, mainly due to lower coal prices. Also contributing to the reduction was Peso appreciation, which affected 20% of PSA and 97% of IPP costs. PSAs share for this period was 48%, while IPPs share was 37%.
Transmission and other charges
Transmission and other charges, which include taxes and subsidies, also registered a net reduction of P0.0777 per kWh.
Collection of the Feed-In Tariff Allowance (FIT-All) meanwhile remains suspended until the August billing month, as directed by the Energy Regulatory Commission (ERC).
Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively; while taxes, universal charges, and FIT-All are all remitted to the government.
Meralco’s distribution charge, meanwhile, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022.
Meralco calls on customers to apply for lifeline discount; reminds public to practice electrical safety
Following the release of the amended rules for the Lifeline Rate program, Meralco supports the call of the ERC and the Department of Energy for eligible customers to apply to avail of the discount.
Those who are beneficiaries of the Pantawid ng Pamilyang Pilipino Program (4Ps) or members of the marginalized sector who have obtained certification from their local social welfare and development office are qualified to apply.
Customers living in condominiums, subdivisions, those with net-metering services, and those with violations of the Anti-Pilferage Act however are no longer qualified for the Lifeline Rate.
In addition, the power distributor also reminded customers to continue observing electrical safety given the increased likelihood of flooding this rainy season.
Some tips that customers can observe include switching off the main electrical power switch or circuit breaker in case of flooding and ensuring that hands are dry when touching electrical appliances and facilities.
All electrical wires, connectors, and other wiring devices should also be kept completely dry, and if outlets or appliances are drenched, it’s best to have a licensed electrician check these before using.
Customers can report power outages and other concerns to Meralco through its official social media accounts on Facebook (www.facebook.com/meralco) and Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211 and 8631-1111.