MANILA – The electricity rate of Manila Electric Co. (Meralco) for the July billing period decreased by P0.7213 per kilowatt-hour (kWh), primarily due to a reduction in generation charges. This brings the overall electricity rate for a typical household to P11.1899 per kWh, down from P11.9112 per kWh in June. 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 in the dry season and the expiration of distribution-based refunds.
The generation charge, which accounts for more than 50 percent of a customer’s total monthly bill, dropped by P0.6436 per kWh to P6.6066 per kWh from P7.2502 per kWh in June. The decrease in generation charge is attributed to lower spot market prices, which decreased by P2.6597 per kWh due to declining demand in the rainy season. Additionally, charges from power supply agreements and independent power producers also saw a decrease of P0.3915 and P0.4658 per kWh, respectively, due to lower coal prices. Transmission and other charges, including taxes and subsidies, had a net reduction of P0.0777 per kWh.
In the previous month, Meralco increased its electricity rate by P0.4183 after the expiration of a distribution-related refund. The refund, equivalent to P0.8656 per kWh or P173.12 for a household consuming 200 kWh a month, had mitigated earlier rate hikes.
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