power and water

Meralco further slashes rates in September 2020

Aika Rey

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This is the 5th straight month that Meralco has cut its rates

The Manila Electric Company (Meralco) on Wednesday, September 9, announced that it will further slash its rates this month by P0.0623 to P8.4288 per kilowatt hour (kWh).

For a household that consumes 200 kWh, this is equivalent to a P12 reduction in the total bill.

This is the 5th straight month that Meralco has cut its rates. In August, the overall rate for a typical household was at P8.4911 per kWh.

Meralco said the latest decrease is due to a decline in the following charges:

  • Generation charge – P0.1710 due to force majeure claims
  • Power supply agreements charges – P0.3032 due to force majeure claims
  • Wholesale Electricity Spot Market charges – P0.0147 due to a decrease in Luzon demand brought by the modified lockdown in August
  • Transmission charges – P0.0112 for ancillary service charges
  • Taxes and other charges – P0.0130
  • Environmental charge – P0.0025 remains suspended

Total force majeure claims for September amounted to about P463 million. Had Meralco not invoked this provision – which it also did in August due to the lockdown – it said that the total rate would have increased by 13 to 14 centavos per kWh.

Meanwhile, Meralco said purchases from independent power producers inched up by P0.0601 per kWh. – Rappler.com

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Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.