RESIDENTIAL CLIENTS of Manila Electric Co. (Meralco) may receive some relief this month as the power distributor revealed a drop in electricity tariffs for May, fueled by reduced generation and transmission expenses.
Following three months of increases, the overall rate for May is anticipated to decline by P0.7499 per kilowatt-hour (kWh) to P12.2628 per kWh from P13.0127 per kWh in April, Meralco reported in a statement on Tuesday.
This will result in a downward adjustment of approximately P150 in the total electricity bill for customers utilizing 200 kWh. Those utilizing 300 kWh, 400 kWh, and 500 kWh will experience reductions of P225, P300, and P375, respectively.
“The decrease in rates is attributed to lower generation and transmission costs, which have notably decreased,” Joe R. Zaldarriaga, Meralco vice-president and head of corporate communications, stated partly in Filipino.
Generation charges, which encompass the cost of electricity procured from suppliers, fell by P0.3144 per kWh to P7.4651 per kWh this month, mainly due to diminished charges from the Wholesale Electricity Spot Market (WESM) and independent power producers (IPPs).
WESM charges reduced by P1.1424 per kWh owing to an improved supply situation in the Luzon grid, Meralco stated.
“While the grid’s peak demand increased by 1,372 MW (megawatts), this was more than compensated by the 1,475-MW decrease in average capacity taken offline.”
Charges from IPPs also dropped by P0.9555 per kWh amid higher average IPP dispatch and the appreciation of the peso, which influenced approximately 97% of dollar-denominated expenditures. The peso predominantly traded at the P56 level last month before closing at P55.833 on April 30, climbing from its P57.21 finish on March 31, as weak US economic indicators sparked recession concerns that weakened the dollar.
These reductions helped mitigate the P0.1884 per kWh increase in charges from power supply agreements (PSA) due to lower dispatch.
WESM, IPPs, and PSAs made up 26%, 33%, and 41%, respectively, of Meralco’s total energy requirement during the period.
The P0.2970 per kWh drop in the transmission fee — driven by the decline in ancillary services charges from the reserve market and contracts — also aided in the reduction of May electricity tariffs.
Other expenses, including taxes, fell by a net P0.1385 per kWh.
Pass-through fees for generation and transmission are remitted by Meralco to the electricity providers and the grid operator, respectively. Taxes, universal charges, and Feed-in Tariff allowance are forwarded to the government.
Meralco’s distribution charge has remained consistent at P0.0360 per kWh since August 2022.
“Customers also continue to gain from the ongoing application of the distribution-related true-up adjustment, which corresponds to a decrease of P0.2024 per kWh for residential clients,” it stated.
STABLE POWER DURING ELECTIONS
Meanwhile, Meralco indicated that electricity service throughout its franchise area stayed stable during the midterm elections held on Monday.
“This was made feasible by our proactive preparations that began in November last year, involving the examination and maintenance of power facilities, ensuring steady power to critical election venues,” stated Froilan J. Savet, Meralco first vice-president and head of networks of Meralco.
Mr. Savet noted that the company dispatched over 3,000 personnel in key locations, including the Commission on Elections’ Command Center in Parañaque City, which served as the central hub for election oversight, to guarantee rapid response.
“Meralco will remain fully alert and on standby 24/7 to address any potential issues until the winners of the midterm elections are announced,” Mr. Zaldarriaga added.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
