The Manila Electric Company (Meralco) announced on Tuesday, March 9, another drop in rates as it implements refunds for customers.

The power distributor said its rate for March is the lowest since August 2017, declining by P0.3598 per kilowatt-hour (kWh) to P8.3195 from P8.6793 in February.

This is equivalent to reductions for households consuming the following, for example:

• P71.96 for 200 kWh
• P107.94 for 300 kWh
• P143.92 for 400 kWh
• P179.90 for 500 kWh

Meralco will be implementing what is called the distribution rate true-up refund beginning March.

In February, the Energy Regulatory Commission granted the power firm’s petition to refund P13.89 billion to customers, given discrepancies in the actual weighted average tariff and the interim average rate. The refunds will be given within two years.

For residential customers, the refund rate is P0.2761 per kWh and will appear in the electricity bill as “Dist True-Up.”

The March bill will also include adjustments for over- and under-recoveries.

A lower generation rate due to a higher share of supply from the Wholesale Electricity Spot Market (WESM) contributed to the overall downward adjustment. The generation rate for March is lower by P0.0403 to P4.3749.

WESM rates held up at P2.4609 per kWh, with an increase in share to 11.7% in March from 7.1% in February.

The lower WESM charge offset increases in costs from power supply agreements and independent power producers of P0.0175 per kWh and P0.1338 per kWh, respectively. – Rappler.com