MANILA, Philippines – The Manila Electric Company (Meralco) on Wednesday said it will reduce power rates it charges to its customers this month.
In a statement, Meralco said electricity rates will be cheaper by P0.41 per kilowatt hour (kWh) in January.
This reflects a decrease of around P82 in the total electricity bill of a household typically consuming 200 kWh per month.
For households consuming 300 kWh a month, this means a decrease of P123, P164 for 400 kWh and as much as P205 for those consuming 500 kWh a month.
Meralco said the decrease is due to low power costs from its suppliers.
“The decrease is mainly the result of a P0.8659 per kWh reduction in the cost of power from Meralco’s Power Supply Agreements (PSA),” the power distributor said.
“Cost of power from the independent power producers also decreased by P0.0634 per kWH due to improved dispatch and strengthening of the peso against the US dollar,” it added.
Meralco also explained that the lower PSA charges were brought about by a reduction in capacity fees as a result of the annual reconciliation of outage allowances done at the end of each year under the PSAs approved by the Energy Regulatory Commission. – RRD (with details from Correspondent Joan Nano)