Manila Electric : Electricity rates go down in January

Lowest generation charge since October 2004

MANILA, PHILIPPINES, 12 January 2017 - To start off the new year on a positive note, Meralco announced that there will be a decrease in the rate for a typical household this January 2017 by PhP0.2703 per kilowatthour (kWh), thereby bringing it down to PhP8.09 per kWh, the lowest since October 2009.

This translates to a decrease of around PhP54 in the total electricity bill of a household with monthly consumption of 200 kWh. The decrease this month is mainly due to the downward movement in the generation charge.

This month's overall rate is lower by PhP0.31 per kWh compared to January 2016's PhP8.40 per kWh.
Lower capacity charges cause generation rate decrease

This month, there was a decrease in the generation charge, which is PhP0.2351 per kWh lower than last month's PhP3.9351 per kWh. At PhP3.70 per kWh, the generation charge is PhP0.22 per kWh lower compared to January 2016's PhP3.92 per kWh. This is also the lowest generation charge since October 2004.

The decrease resulted from the PhP0.59 per kWh decrease in the cost of power supplied by PSA plants, mainly due to lower capacity charges of Pagbilao and Ilijan. This reduction in capacity fees is due to the annual reconciliation of outage allowances that is done at the end of each year under the contracts approved by the Energy Regulatory Commission (ERC). The capacity fees from these suppliers will normalize in the following month. The share of PSAs stood at 39.7%.

Meanwhile, the cost of power from the Independent Power Producers (IPPs) showed a slight reduction of PhP 0.0005 per kWh. Improved dispatch of the First Gas-Sta. Rita plant effectively offset the effects of the lower dispatch levels of Quezon Power and First Gas-San Lorenzo. The share of the IPPs to Meralco's total requirements for December 2016 was at 38.4%.

Overall charges from the Wholesale Electricity Spot Market (WESM) had a very minimal adjustment of PhP0.0267 per kWh, or from PhP2.5398 to PhP2.5665 per kWh. The share of WESM purchases to Meralco's total requirements went down from 22.5% to 21.8%.
Adjustments in other bill components

This month, there was a slight increase in thetransmission charge of residential customers by PhP0.0042 per kWh.

But taxes and other charges decreased by a combined amount of around PhP0.0394 per kWh.

Meralco's distribution, supply, and metering charges, meanwhile, have remained unchanged for 18 months, after these registered reductions in July 2015. Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the National Grid Corporation of the Philippines (NGCP).
Meralco provides energy efficiency tips for customers

In spite of the lower electricity rates this month, Meralco advised its customers to continue practicing energy efficiency initiatives to help manage their electricity consumption. These include everyday household tips that may help save energy. Simple tips such as unplugging appliances when not in use to avoid 'phantom load.' Using a power board or strip which can supply power to several appliances at once and allows a user to conveniently turn them off simultaneously using just one switch. Maximizing natural light during daytime and keeping appliances well maintained to ensure optimal performance. For more helpful tips, customers may visit its website at www.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco.