Meralco rates down for 4th straight month

MANILA, Philippines – The Manila Electric Company (Meralco) announced a decrease of P0.4176 per kilowatt hour (kWh) for August, marking the 4th consecutive power rate cut for the year.

Meralco said on Tuesday, August 6, that it adjusted rates to P9.5674 per kWh due to lower spot market prices.

A typical household consuming 200 kWh will see a decrease of P84.

These are the reductions for households consuming more than that:

The latest reduction brought the total downward adjustment to almost P1 per kWh since May 2019.

Lower rates in the Wholesale Electricity Spot Market led to the reduction in the generation charge. (READ: Meralco core income rises by 14% to P12.3 billion in 1st half of 2019)

Generation charge, the largest component of an electric bill, went down by P0.4607 per kWh to P4.9620 per kWh.

"On the other hand, cost of power from the independent power producers increased by P0.0911 per kWh despite the strengthening of the peso against the [United States] dollar and lower fuel prices as a result of quarterly repricing of Malampaya natural gas and continued decline in coal prices," Meralco said. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.

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