July Meralco bill slightly lower after distribution rate cut

MANILA, Philippines – Customers of Manila Electric Company (Meralco) can expect slightly lower electricity bills this month.

This was after the Energy Regulatory Commission (ERC) on Friday approved its petition to implement a lower distribution rate of P1.39 per kilowatt hour (kWh).

“This is a welcome relief for Meralco’s customers. It will surely mitigate possible increases in  the other components of Meralco’s retail rates occasioned by the tight supply condition and Malampaya gas restrictions that were experienced last month,” outgoing ERC Chairperson Zenaida Cruz-Ducut said in a statement. (READ: Meralco consumers furious over bill deposit update)

The regulator issued a provisional authority to Meralco to implement the following rates: P1.0114 per kWh for distribution charge; P0.2251 per kWh in supply charge; and P0.1444 per kWh in metering charge. In all, there will be an adjustment of P1.3810 per kWh in the July bills of Meralco customers.

The said rates are 11.26% or P0.1752/kWh lower than the current average rate of Meralco at P1.5562/kWh.

In its  application for approval of the interim average rate of P1.3939/kWh, Meralco proposed to reduce its current rate by removing the component representing its under-recoveries in the distribution charge for the Second Regulatory Period, or from July 2007 to June 2011.

The ERC then made a further reduction of P0.0129/kWh to remove the allowance for net efficiency, which was embedded in its rates for the Third Regulatory Period, or from July 2011 to June 2015.

In doing so, the ERC made sure Meralco will not over-collect from its customers for its previous under-recoveries and allowed net efficiency adjustments.

Last week, Meralco said it anticipates a slight delay in delivery of July power bills for some of its more than 5 million customers.

Customers who will be included in the adjustment of the bill delivery schedule are those who usually receive their bills on the 6th to the 12th of the month.

Meralco said these customers can expect their bills to arrive within a week from the time they are supposed to get their bills. For example, a customer whose bill usually arrives on the 10th of the month will most likely have his July bill arrive between the 14th and the 17th of this month.

As for the due dates of the customers covered by the slide in the billing schedule, these will also slide correspondingly, Meralco said.

Offset anticipated higher generation charge

This downward adjustment may offset an anticipated increase in generation charge this month.

Meralco said the generation charge for July is likely to increase because of higher prices at the Wholesale Electricity Spot Market for the June supply month. Meralco estimates the generation charge will go up by P0.25 to P0.30 per kWh this month.

Aside from the generation and distribution charges, other components of the bill are: transmission charge (10%), system loss charge (5%), as well as taxes and other charges (12%).

Meralco distributes electricity in Metro Manila, Bulacan, Cavite and Rizal, as well as parts of Batangas, Laguna, Quezon and Pampanga. – Rappler.com