The Manila Electric Company (Meralco) cut rates in February, as the generation charge has decreased.

In a statement, Meralco said overall rates have been slashed by P0.0704 per kilowatt hour (kWh) to P8.6793, from P8.7497 in January.

This is equivalent to a decrease for households consuming the following:

• P14.08 for 200 kWh
• P21.12 for 300 kWh
• P28.16 for 400 kWh
• P35.20 for 500 kWh

Meralco said the downward adjustment was driven by a lower generation charge of P4.4152, slashed by P0.0422 compared to the January charge. The lower generation charge was mainly due to lower fixed charges from power supply agreements.

Transmission charges for residential customers declined by P0.0218 per kWh due to lower ancillary service charges, while taxes and other charges decreased by P0.0154 per kWh. The decrease in prices was due to the refund for excess collections, as ordered by the Energy Regulatory Commission.

Meanwhile, charges from independent power producers (IPPs) and the Wholesale Electricity Spot Market (WESM) increased.

IPP rates inched up by P0.2103 due to lower average dispatch, higher Malampaya natural gas prices caused by quarterly repricing, and peso depreciation.

WESM charges were up by P0.9577 per kWh due to higher Luzon grid plant capacity. – Rappler.com