Meralco rates decline in September on lower generation charge

RESIDENTIAL HOUSEHOLDS in areas served by Manila Electric Co. (Meralco) will get some relief as the distributor cut its September electricity rates after two straight months of increases amid the lower cost of power purchased from suppliers.

- By Sheldeen Joy Talavera

The overall electricity rate will go down by P0.1852 per kilowatt-hour (kWh) to P13.0851 per kWh this month from P13.2703 per kWh in August, Meralco said ina statement on Wednesday.

Households consuming 200 kWh will see their monthly electricity bills drop by P37. Those consuming 300 kWh, 400 kWh, and 500 kWh will see reductions of P56, P74, and P93, respectively.

Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga attributed the decline in the power rates to lower generation charge of independent power producers (IPPs) and power supply agreements (PSAs) amid a stronger peso, as their costs are mostly in US dollars.

“Charges from IPPs and PSAs went down by P1.3459 and P0.3660 per kWh, respectively, due to the appreciation of the local currency against the US dollar and decrease in international fuel prices. The stronger peso affected around 99% of IPP costs and 57% of PSA costs that were dollar-denominated,” the power distributor said.

The peso closed at P57.13 per dollar on Aug. 29, strengthening by P19 from its July 31 finish of P58.32.