Manila Electric Co. (Meralco) has once again lowered its electricity rate for the July billing period due to low generation charges. The rate has decreased by P0.7213 per kilowatt-hour (kWh), bringing the typical household’s overall electricity rate to P11.1899 per kWh from P11.9112 per kWh in June.
According to Meralco, residential customers consuming 200 kWh a month can expect a decrease of around P144 in their total bill.
This decline in rates ends a two-month streak of rate hikes caused by high demand during the dry season and the expiration of distribution-based refunds.
The generation charge, which accounts for over 50 percent of a customer’s total monthly bill, dropped by P0.6436 per kWh. This brings the total charge to P6.6066 per kWh this month from P7.2502 per kWh in June.
Meralco attributes this decrease to lower spot market prices, which have declined by P2.6597 per kWh due to reduced demand during the rainy season.
Charges from power supply agreements and independent power producers have also decreased by P0.3915 and P0.4658 per kWh respectively, thanks to lower coal prices.
Transmission and other charges, including taxes and subsidies, have a net reduction of P0.0777 per kWh.
Last month, Meralco raised its electricity rate by P0.4183 following the end of a distribution-related refund. This refund, which amounted to P0.8656 per kWh or P173.12 for a household consuming 200 kWh a month, helped moderate rate hikes earlier this year.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.