The Manila Electric Company (Meralco) will slash power rates this month due to lower generation and transmission charges.
In a media briefing Friday, Meralco spokesperson Joe Zaldarriaga said the utility giant would cut power rates by P0.0106 per kilowatt hour (kWh) to P10.8895 per kWh.
The adjustment will reflect a P2 reduction in electricity bills for households consuming 200 kWh.
Zaldarriaga said power generation cost declined by P0.2137 to P6.9154 per kWh due to lower prices in the Wholesale Electricity Spot Market (WESM) and independent power producers (IPPs), where Meralco sourced the power requirements of its customers.
Lower generation costs from WESM and IPPs have offset the higher charges from power supply agreements.
“The continued appreciation of Philippine peso which affects 95 percent of IPP cost, which are dollar denominated, contributed to the reduction,” he said.
Meralco sources 47 percent of power from PSAs, 37 percent from IPPs and 16 percent from WESM this month.
Zaldarriaga said Meralco is still implementing distribution-related refunds equivalent to P0.8656 per kWh for residential customers, which tempers this month’s power rates. The refunds will be rolled out until May this year. (PNA)