“For residential customers consuming 200 kWh, they will see a decrease of around P150 in their total electricity bill this month,” said Joe R. Zaldarriaga, Meralco vice president and head of corporate communications. “The rate reduction is due to lower generation and transmission charges.”
Lower generation cost
The generation charge saw a P0.3144/kWh decline to P7.4651/kWh, primarily driven by lower charges from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs).
WESM prices fell by P1.1424/kWh, thanks to improved supply conditions in the Luzon Grid, which saw a 1,475-MW reduction in capacity on outage despite a 1,372-MW rise in peak demand.
Meanwhile, IPP charges dropped by P0.9555/kWh, bolstered by stronger dispatch and the Peso’s appreciation—its highest level since December 2023—which impacted the dollar-denominated portion of IPP costs.
The decline helped offset a P0.1884/kWh increase in Power Supply Agreements (PSAs), caused by reduced PSA dispatch. The peso’s strength also lessened PSA-related costs, 56 percent of which are in US dollars. WESM, IPPs, and PSAs accounted for 26 percent, 33 percent, and 41 percent, respectively, of Meralco’s total energy requirements.
Transmission, taxes also down
Residential transmission charges fell by P0.2970/kWh, following lower ancillary service rates and the completion of ERC-approved Reserve Market adjustments. Other charges, including taxes and universal fees, registered a net decrease of P0.1385/kWh.
Meralco’s distribution charge remains unchanged since August 2022, while a distribution-related true-up adjustment continues to apply, giving an additional P0.2024/kWh cut for residential users.
Stable power during elections
Meralco reported generally stable electricity service across more than 3,000 polling and canvassing centers during the May 12 midterm elections, with only minor, quickly resolved disruptions.
“Our crews were on standby and immediately addressed any issues,” said Zaldarriaga. “We remain on full alert until all winners are proclaimed.” —Ed: Corrie S. Narisma
