June 2024 Rates Updates
Customers of Manila Electric Company (Meralco) can expect a significant reduction in the June electricity rates, a turnaround from the increase earlier announced, as the power distributor implements staggered collection of generation costs from the Wholesale Electricity Spot Market (WESM).
In its order promulgated on June 13, the Energy Regulatory Commission (ERC) ordered all distribution utilities and electric cooperatives in the country, including Meralco, to stagger the collection of charges covering WESM purchases in the May supply month in four (4) equal monthly installments starting this billing month until September 2024.
In effect, Meralco customers will see a P1.9623 per kWh decrease in the electricity rate this June instead of the P0.6436 per kWh increase.
This brings the overall rate for a typical household to P9.4516 per kWh from the previous month’s P11.4139 per kWh. For residential customers consuming 200 kWh, the adjustment is equivalent to a decrease of around P392 in their total electricity bill.
The adjusted rate for June reflects a P1.8308 per kWh decrease in generation charge.
The increases in transmission charge and feed-in tariff allowance are retained at P0.1450 per kWh and P0.0474 per kWh, respectively. Taxes and other charges, meanwhile, have a net reduction of P0.3239 per kWh.
“We ask for the understanding of our customers over the delayed bills as we implement the newly issued order of the ERC. Rest assured that Meralco will implement adjusted due dates to give our customers enough time to pay their bills,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said.
Higher generation charge expected in the next three months
“We would like to advise this early that our customers can expect generation charge to increase in succeeding months as we collect the deferred amounts on staggered basis as result of the recent developments,” Zaldarriaga said.
As earlier announced, Meralco, Quezon Power (Philippines) Ltd., San Buenaventura Power Ltd. Co., and South Premiere Power Corporation, deferred P500 million in generation costs to cushion the impact of higher pass-through charges to Meralco's customers. These will be collected over the next three billing periods, as cleared by the ERC.
“With these already deferred costs, and the recent order of the ERC to also stagger the collection of WESM charges, around P0.77 per kWh will be added every month to the generation charge in the July to September bills,” Zaldarriaga concluded.