The Manila Electric Company (Meralco) announced that overall electricity rates went down to P10.0732 per kWh this September, with a decrease of P0.1458 per kWh from last month’s P10.2190 per kWh. For a typical household consuming 200kWh, this will mean a reduction of around P29 in their total bill.

“We are pleased to announce that despite the recent figures released on inflation and a slight depreciation of the peso, Meralco customers can find some relief in the decrease of power rates this month, as this goes against the current trend that we see with other basic goods and commodities,” said Meralco spokesperson and head of Public Information Office Joe Zaldarriaga.

From PhP5.3491 per kWh in August, generation charge for this month went down to PhP5.2719 per kWh, with a decrease of PhP0.0772 per kWh.

Lower generation charge for this month is the result of a PhP2.0768 per kWh decrease in Wholesale Electricity Spot Market (WESM) charges. WESM prices decreased this month as a result of both less power plant capacity on outage and lower average demand for power in Luzon. The share of WESM purchases to Meralco’s total requirement this month was 21 percent.

The decrease in WESM charges offset a PhP0.6112 per kWh and a PhP0.3287 per kWh rise in the cost of power from Power Supply Agreements (PSAs) and Independent Power Producers (IPPs), respectively. Both PSA and IPP charges increased partly because of higher fuel prices and peso depreciation. The share of PSA and IPP purchases to Meralco’s total requirement this month was 39 percent and 40 percent, respectively.

Transmission charge of residential customers decreased by P0.0292 per kWh due to lower NGCP Ancillary Charges. Meanwhile, taxes and other charges went down by PhP0.0394 per kWh this month.

Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 38 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 NGCP. Taxes and other public policy charges like the FIT-All rate are remitted to the government.

Energy efficiency tips

Meralco once again encourages its customers to still continue practicing energy efficiency initiatives to help manage their electricity consumption.

These include everyday household tips that may help save energy, such as:

1) Unplugging appliances when not in use to avoid “phantom load”;

2) Using the aircon at mid-setting or at 25 degrees Celsius for maximum efficiency;

3) 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 with just one switch;

4) Maximizing natural light during daytime and keeping appliances well maintained to ensure optimal performance.

For more helpful tips, customers may visit Meralco’s website at www.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco.