Manila Electric Co. (Meralco), in a press statement, said electricity rates will drop by P0.1637 per kilowatt-hour (kWh) this January, bringing the overall rate for a typical household to P12.9508 per kWh, down from P13.1145 per kWh in December.
The big picture
This marks the second consecutive month of rate reductions, following a decrease implemented last month.
“While there were upward pressures on certain cost components this January, overall electricity rates declined — for the second straight month,” Meralco vice president and head of corporate communications Joe R. Zaldarriaga said in the same statement.
“We hope that this development will bring relief to all our customers as we start another year.”
By the numbers
What’s driving the lower rates
The overall decline was mainly supported by lower transmission and generation charges, which offset increases in other cost components.
Zoom in: Wholesale Electricity Spot Market (WESM)
WESM (Wholesale Electricity Spot Market) charges dropped sharply by P1.1898 per kWh
This followed an improved supply situation in the Luzon Grid, with:
Average peak demand down by 367 MW
Capacity on outage reduced by 237 MW
PSA (Power Supply Agreement) charges declined by P0.0516 per kWh
The decrease came after the San Buenaventura Power Ltd. Co. (SBPL) plant returned online following a scheduled outage last month
Independent Power Producers (IPPs):
IPP charges increased by P1.4879 per kWh
Drivers included:
Higher fixed fees for Sta. Rita, following the Energy Regulatory Commission’s confirmation of First Gas Power Corp.’s computation method
The peso’s depreciation, with 99% of IPP costs dollar-denominated
Energy mix breakdown
New renewable energy charge kicks in
January also marks the start of collections for the Green Energy Auction Allowance (GEA-All), set at P0.0371 per kWh, following a recent ERC directive. Here’s how it works:
Despite this new charge, overall rates still declined due to reductions in other bill components.
Meralco warns against cable theft
In another development, Meralco renewed its warning against the theft of electrical facilities, following a recent incident in Quezon City that temporarily disrupted power to nearly 8,000 customers.
The incident resulted in the suspect sustaining critical flashover burns, with electricity restored after four hours due to quick repair work by Meralco crews.
“These acts pose life-threatening risks due to the high voltage of Meralco facilities,” said Meralco senior vice president and head of networks Froilan J. Savet, in the statement.
By the numbers
The law
Theft of power cables and electrical facilities violates Republic Act No. 7832, or the Anti-Electricity Pilferage Act, which carries penalties including imprisonment and fines. —Ed: Corrie S. Narisma
