October 2024 Rates Updates
The Manila Electric Company (Meralco) announced today a reduction of P0.3587 per kWh in the electricity rate this October, bringing down the overall rate for a typical household to P11.4295 per kWh from the previous month’s P11.7882 per kWh.
For residential customers consuming 200 kWh, they will see a decrease of around P72 in their total electricity bill this month.
Lower WESM charges offset additional Malampaya costs
Driving this month’s overall rate decrease is the P0.3059 per kWh reduction in the generation charge due to lower costs from the Wholesale Electricity Spot Market (WESM).
WESM charges decreased by P5.1001 per kWh following the completion last month of the collection of deferred May 2024 costs ordered by the Energy Regulatory Commission (ERC). Also contributing to the reduction was the improved supply situation in the Luzon grid as average demand and average capacity on outage went down by 544 MW and 519 MW, respectively.
The significant decrease in WESM charges more than offset increases in charges from First Gas plants Sta. Rita and San Lorenzo as a result of the ERC’s approval of higher pass-through Malampaya fuel prices beginning this October 2024 under their new Gas Sale and Purchase Agreements (GSPAs) with the Malampaya consortium. On top of the higher Malampaya gas price, the ERC also allowed the amortization over 12 months of cost differentials between the old and new GSPAs covering the January 2024 to August 2024 supply months.
Mainly because of these additional Malampaya costs, charges from Independent Power Producers (IPPs) increased by P1.8556 per kWh. Meanwhile, charges from Power Supply Agreements (PSAs) inched up by P0.1128 per kWh.
WESM, IPPs, and PSAs accounted for 24%, 26%, and 50%, respectively, of Meralco’s total energy requirement for the period.
Net reduction in transmission and other charges
The transmission charge also went down by P0.0383 per kWh due to lower ancillary service charges. Taxes and other charges similarly decreased by P0.0145 per kWh.
Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) are all remitted to the government.
Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer in August 2022.
Meralco reminds public to transact only with authorized personnel, practice electrical safety
To avoid falling for fraudulent activities, Meralco advised its customers to be vigilant and only transact with the distribution utility’s authorized personnel.
All transactions with the company, including payments, are accompanied by an official receipt and should only be done through the distribution utility’s offices such as Business Centers, or through official payment channels and authorized payment partners.
When transacting with Meralco employees, customers should be aware that official representatives of the company are in complete uniform with IDs and are using Meralco vehicles.
Meralco also urged the public to continue observing electrical safety tips such as avoiding using “octopus connections” or plugging in extension cords into a single power outlet as this could overheat and result in a fire and other accidents. Customers should also avoid placing and running electrical cords under rugs or carpets as constantly walking on these could damage the insulation of the wires.
Customers can report their concerns through Meralco’s official social media accounts on Facebook (www.facebook.com/meralco) and X formerly Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211.