By Sheldeen Joy Talavera, <\/b>Journalist<\/i><\/p>\n
HOUSEHOLD CLIENTS in regions supplied by Manila Electric Co. (Meralco) will experience a decrease in their electricity expenses this month, primarily attributed to lower generation fees during this timeframe.<\/span><\/p>\n The overall tariff will diminish by P0.2189 per kilowatt-hour (kWh) to P11.7428 per kWh in January from P11.9617 per kWh in December, as stated by the power provider on Monday.<\/p>\n This will result in a decrease of approximately P44 in the overall electricity bill for residential customers utilizing 200 kWh. Those using 300 kWh, 400 kWh, and 500 kWh will experience reductions of P66, P89, and P112, respectively, in their bills this month.<\/span><\/p>\n Meralco indicated it lowered power tariffs after the generation fee fell by P0.1313 per kWh to P6.8358 per kWh largely due to reduced expenses from the Wholesale Electricity Spot Market (WESM) and independent power producers (IPPs).<\/span><\/p>\n WESM fees declined by P0.8840 per kWh attributed to the improved supply scenario in the Luzon grid, as both average peak demand and average outage capacity decreased.<\/span><\/p>\n Charges from IPPs reduced by P0.1593 per kWh owing to the appreciation of the peso, which affected 97% of the expenses that were dollar-based. Additionally, the lower fuel costs and increased dispatch from the First Gas-Sta. Rita facility contributed to the reduction.<\/span><\/p>\n The peso closed at P57.845 on December 27, gaining P0.775 from its finish of P58.62 on November 29.<\/p>\n \u201cThese cuts moderated the P0.5638 per kWh rise in fees from power supply agreements (PSAs) resulting from lower plant dispatch,\u201d the company noted.<\/p>\n WESM, IPPs, and PSAs represented 34%, 30%, and 36%, respectively, of Meralco\u2019s total energy needs for the period.<\/span><\/p>\n In other components, transmission and additional charges declined by P0.0876 per kWh.<\/p>\n Pass-through charges for generation and transmission are settled with the energy suppliers and the grid operator, respectively. Taxes, universal charges, and Feed-in Tariff Allowance are remitted to the government.<\/p>\n Meralco\u2019s distribution fee has remained stable at P0.0360 per kWh since August 2022.<\/p>\n \u201cAlthough electricity rates have fallen this month, we want to remind our clients to persist in practicing energy efficiency as a lifestyle especially with the dry season approaching swiftly,\u201d stated Joe R. Zaldarriaga, Meralco\u2019s vice-president and head of corporate communications.<\/p>\n Meanwhile, Meralco customers can anticipate a slight reduction in their electricity bills in February as the Energy Regulatory Commission (ERC) previously instructed distribution companies to refund all collected and unused regulatory reset expert costs. Future collection of these costs has also been halted. <\/span><\/p>\n \u201cFor Meralco, this signifies a one-time refund of 22.6 centavos per kWh plus an additional refund that will be shown as a separate line in the bill of P0.0023 per kWh. Hence, this will appear in February bills for customers,\u201d remarked Lawrence S. Fernandez, Meralco\u2019s vice-president and head of utility economics, during a briefing.<\/p>\n To recall, the ERC has also sanctioned the recovery of the remaining P3.277 billion for energy producers that supported the reserve market in February and March 2024.<\/p>\n The approved sum will be charged to consumers in Luzon over a duration of three months, increasing P0.12 per kWh in the transmission fee starting in February.<\/p>\n The reserve market allows the system operator to acquire power reserves from the WESM to fulfill the energy system’s reserve requirements. Its complete commercial operations commenced in January of the previous year.<\/p>\n