Power rates down, pump prices up

Power distributor Manila Electric Co. (Meralco) is lowering electricity rates by P0.3587 per kilowatt-hour this October, bringing down the overall rate to P11.4295 per kWh from last month's P11.7882 per kWh.

-  BRIX LELIS

This latest adjustment, which snaps a three-month uptrend, is equivalent to a decrease of about P72 in the electricity bills of typical households consuming 200 kWh.

At a press conference on Friday, Meralco spokesperson Joe Zaldarriaga said the decline was driven by about P0.31 per kWh reduction in generation costs due to lower power spot market prices.

The generation charge covers the cost of power purchased by Meralco from independent power producers (IPPs) and the Wholesale Electricity Spot Market (WESM), as well as through power supply agreements (PSAs).

Zaldarriaga said WESM charges decreased by P5.10 per kWh following the completion of the collection of staggered costs ordered by the Energy Regulatory Commission in June.