Meralco customers are getting another break on their electricity bills this September, with the utility cutting rates for the second consecutive month even as higher fuel costs and a weaker peso pushed up power generation expenses.
Manila Electric Company announced a reduction of P0.0409 per kilowatt-hour, bringing the overall residential rate down to P14.7424 per kWh from P14.7833 per kWh in August.
For a typical household consuming 200 kWh, the adjustment translates to savings of about P8 on the monthly bill.
“For residential customers of Meralco who are consuming 200 kWh, this adjustment translates to a reduction of around P8 in the total electricity bill,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said.
“This follows a rate decrease Meralco implemented last month, and we hope that this will somehow provide relief to our customers,” he added.
Lower charges cushion customers from higher generation costs
The September reduction highlights how lower ancillary service charges and taxes helped shield consumers from what could have been a bigger increase in electricity costs.
Ancillary service charges collected by the National Grid Corporation of the Philippines fell by P0.3344 per kWh, mainly due to lower Reserve Market charges.
Taxes and other charges also declined by a net P0.1657 per kWh.
Meralco said the completion of the Malampaya gas facility’s maintenance shutdown allowed the First Gas and Prime CoreGen plants to fully utilize indigenous natural gas, which is exempt from value-added tax.
Those savings were enough to offset a P0.4232 per kWh increase in the generation charge, which was driven largely by the depreciation of the peso and higher fuel costs amid escalating tensions in the Middle East.
The increase was partly tempered by lower prices at the Wholesale Electricity Spot Market as average demand in the Luzon grid declined by about 1,200 megawatts because of prevailing weather conditions.
During the supply month, Power Supply Agreements accounted for around 71 percent of Meralco’s requirements, followed by First Gas and Prime CoreGen at 24 percent and the spot market at about 4 percent.
Refunds deliver additional savings
Customers are also continuing to benefit from two simultaneous refunds being implemented by Meralco.
For residential customers, the combined refunds are equivalent to P1.0139 per kWh, providing a significant cushion against other components of the monthly electricity bill.
Meralco stressed that generation, transmission and ancillary service charges are pass-through costs paid to power suppliers and the NGCP, while taxes, universal charges and other public-policy charges are remitted to the government and relevant agencies.
The company’s actual distribution charge for a typical residential customer, meanwhile, has remained unchanged since August 2022.
The combination of back-to-back rate reductions, continuing refunds and a stable distribution charge gives Meralco customers some relief at a time when global fuel markets and foreign exchange movements continue to create upward pressure on electricity costs.
Beyond bills, Meralco steps up Habagat assistance
Meralco has also expanded support for communities affected by heavy rains and flooding brought by the Habagat.
Through its corporate social development arm, One Meralco Foundation, the company has extended relief assistance to more than 5,000 families since the start of August across Metro Manila, Bulacan, Cavite, Rizal, Nueva Ecija and Pampanga.
Relief operations are continuing in affected areas.
Meralco also reminded customers to remain vigilant about electrical safety during flooding, particularly by staying away from downed power lines and submerged electrical facilities, switching off the main circuit breaker when necessary and ensuring that electrical systems are completely dry before restoring power.
Flood-damaged appliances and wiring should also be inspected by a licensed electrician before they are used again.
Customers were likewise advised to keep mobile phones, laptops, radios and other communication devices charged during periods of severe weather.
For concerns and service inquiries, customers may use the My Meralco app, Meralco’s official social media channels, text 0920-9716211 or 0917-5516211, or call the Meralco Hotline at 16211.
