Manila Electric Company (Meralco) customers will pay P0.3587 per kWh less in their October electricity bill, but the reduction could have reached as high as P0.65 per kWh had the Energy Regulatory Commission (ERC) not implemented new Gas Sale and Purchase Agreements (GSPAs) with the Malampaya consortium and First Gen power plants.
In a press briefing on Friday, Meralco said the overall electricity rate for a typical household will go down to P11.4295 per kWh this month from the previous month's P11.7882 per kWh. Residential customers consuming 200 kWh will see a decrease of around P72 in their total electricity bill this month.
"Driving this month's overall rate decrease is the P0.3059 per kWh reduction in the generation charge due to lower costs from the Wholesale Electricity Spot Market (WESM)," Meralco said.
WESM charges decreased by P5.1001 per kWh following the completion of the last month of the collection of deferred May 2024 costs ordered by the Energy Regulatory Commission (ERC). Also contributing to the reduction was the improved supply situation in the Luzon grid, as average demand and average capacity on outage went down by 544 MW and 519 MW, respectively.
The significant decrease in WESM charges more than offset increases in charges from First Gas plants Sta. Rita and San Lorenzo resulted from the ERC's approval of higher pass-through Malampaya fuel prices beginning this October 2024 under their new Gas Sale and Purchase Agreements (GSPAs) with the Malampaya consortium. In addition to the higher Malampaya gas price, the ERC also allowed the amortization over 12 months of cost differentials between the old and new GSPAs covering the January 2024 to August 2024 supply months.
Because of these additional Malampaya costs, Independent Power Producers (IPPs) charges increased by P1.8556 per kWh. Meanwhile, charges from Power Supply Agreements (PSAs) inched up by P0.1128 per kWh.
WESM, IPPs, and PSAs accounted for 24%, 26%, and 50% of Meralco's total energy requirement for the period.
Net reduction in transmission and other charges
The transmission charge decreased by P0.0383 per kWh due to lower ancillary service charges. Taxes and other charges similarly decreased by P0.0145 per kWh.
Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively. In contrast, taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) are all remitted to the government.
Meralco's distribution charge, on the other hand, has stayed the same since the P0.0360 per kWh reduction for a typical residential customer in August 2022.
Meralco safety reminders
Meralco advised its customers to be vigilant and only transact with the distribution utility's authorized personnel to avoid falling for fraudulent activities.
All transactions with the company, including payments, are accompanied by an official receipt and should only be done through the distribution utility's offices, such as Business Centers or official payment channels and authorized payment partners.
When transacting with Meralco employees, customers should be aware that official representatives of the company are in complete uniform with IDs and are using Meralco vehicles.
Meralco also urged the public to continue observing electrical safety tips such as avoiding using "octopus connections" or plugging in extension cords into a single power outlet as this could overheat and result in a fire and other accidents. Customers should also avoid placing and running electrical cords under rugs or carpets as constantly walking on these could damage the insulation of the wires.
Customers can report their concerns through Meralco's official social media accounts on Facebook (www.facebook.com/meralco) and X, formerly Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211 and 8631-1111.
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