Meralco cuts rates for second consecutive month

Electricity rates for Manila Electric Company (Meralco) customers will decline for the second consecutive month, with the overall rate falling by ₱0.0409 per kilowatt-hour (kWh) in September.

The adjustment brings the rate for a typical household to ₱14.7424 per kWh, down from ₱14.7833 per kWh in August.

“For residential customers of Meralco who are consuming 200 kWh, this adjustment translates to a reduction of around ₱8 in the total electricity bill,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said. “This follows a rate decrease Meralco implemented last month, and we hope that this will somehow provide relief to our customers.”

Lower ancillary service charges, taxes pull down rates

The September rate reduction was mainly driven by lower ancillary service charges collected by the National Grid Corporation of the Philippines (NGCP), along with lower taxes and other charges.

Ancillary service charges declined by ₱0.3344 per kWh, primarily due to lower charges from the Reserve Market.

Taxes and other charges also posted a net decrease of ₱0.1657 per kWh. Meralco said this was largely due to the completion of the Malampaya gas facility’s maintenance shutdown, which allowed the First Gas/Prime CoreGen plants to fully utilize indigenous natural gas that is exempt from value-added tax (VAT).

These reductions more than offset a ₱0.4232-per-kWh increase in the generation charge.

The higher generation charge was mainly attributed to the depreciation of the Philippine peso and increased fuel costs amid the recent escalation of the conflict in the Middle East.

The impact was partly tempered by lower charges from the Wholesale Electricity Spot Market (WESM), as average demand in the Luzon grid fell by about 1,200 megawatts (MW) due to prevailing weather conditions.

For September, Power Supply Agreements, First Gas/Prime CoreGen, and WESM accounted for approximately 71%, 24%, and 4%, respectively, of Meralco’s total supply requirements.

Customers continue to receive refunds

Meralco customers are also continuing to benefit from two simultaneous refunds, equivalent to a combined ₱1.0139 per kWh for residential customers, which are currently being implemented by the utility.

Pass-through charges for generation, transmission, and ancillary services are paid by Meralco to power suppliers and NGCP, respectively. Taxes, universal charges, and other public policy charges are remitted to the government and relevant agencies.

Meralco’s distribution charge, meanwhile, has remained unchanged for a typical residential customer since August 2022.

Meralco steps up relief efforts amid Habagat

Following heavy rains and flooding brought by the southwest monsoon, or Habagat, Meralco, through its corporate social development arm One Meralco Foundation (OMF), has provided relief to communities severely affected by the weather disturbance.

Since the start of August, OMF has extended assistance to more than 5,000 families in Metro Manila, Bulacan, Cavite, Rizal, Nueva Ecija, and Pampanga, with relief operations continuing in affected areas.

Meralco also reminded customers to observe electrical safety, particularly in areas affected by flooding.

Customers are advised to:

Stay away from downed power lines and electrical facilities that may have been damaged or submerged in floodwater.
Turn off the main power switch or circuit breaker, making sure hands and feet are dry before touching electrical equipment.
Unplug appliances and turn off permanently connected devices. Remove light bulbs if possible.
Clean mud and debris from electrical equipment only while wearing rubber gloves and rubber-soled shoes.
Make sure all electrical wires, outlets, and devices are completely dry before use.
Have a licensed electrician inspect appliances and wiring systems before restoring power.
Never use electrical equipment damaged by floodwater.

Meralco also urged customers to keep communication channels open and ensure that mobile phones, laptops, radios, and other communication devices are sufficiently charged.

For inquiries and concerns, customers may use the My Meralco app, reach Meralco through its official social media accounts, text 0920-9716211 or 0917-5516211, or call the Meralco Hotline at 16211.