This adjustment lowers the overall rate for a typical household to P11.74 per kWh, compared to over P11.96 per kWh in December 2024.
For households consuming 200 kWh, this translates to a reduction of P44 in their January electricity bill.
Lower generation charge
Meralco attributed the reduction primarily to a P0.1313 per kWh decrease in the generation charge, now at P6.8358 per kWh. Lower costs from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs) were key contributors.
WESM charges fell by P0.8840 per kWh, owing to improved supply conditions in the Luzon Grid, a 471 MW drop in average peak demand, and a 305 MW reduction in outages.
Meanwhile, IPP charges declined by P0.1593 per kWh, driven by the peso’s appreciation, reduced fuel costs, and higher dispatch from the First Gas-Sta. Rita plant.
PPA charges up
These reductions offset the P0.5638 per kWh increase in Power Supply Agreement (PSA) charges caused by lower plant dispatch.
Additionally, transmission and other charges saw a net reduction of P0.0876 per kWh. Meralco noted that its distribution charge has remained unchanged since August 2022. --Ed: CSN
