ERC approves reduction of Meralco’s distribution charge

By , on June 25, 2014


Photo courtesy of Meralco / Facebook
Photo courtesy of Meralco / Facebook

MANILA — Lower electricity bills are expected by consumers next month after the Manila Electric Company (Meralco) was allowed to reduce its distribution charge.

The Energy Regulatory Commission (ERC) has recently approved Meralco’s distribution charge reduction by an average of 8 centavos per kilowatt-hour (kwh).

ERC said that even with a smaller distribution charge, the country’s positive economic environment will still allow Meralco to recover costs.

“Dahil Maganda ang economic condition natin, mababa ang CPI (Consumer Price Index) na ginamit na pang-adjust, mababa tuloy ang naging singil kumpara noong nakaraang taon,” said ERC executive director Francis Juan in an interview aired on GMA News.

(Because our economy  is good, there is a lower CPI (Consumer Price Index) used to adjust. Thus, there is a lower fee compared last year.)

From the current P1.65 per kwh, the distribution charge will be lowered to P1.56 per kwh starting on July 1, 2014 to June 30, 2015.

The following distribution charge reduction on electricity bills will be imposed to consumers based on Meralco’s socialized rate structure:

  • P0.14 – P0.17 for customers with monthly consumption of less than 200 kwh
  • P34 for customers with monthly consumption of 200 kwh
  • P51 for customers with monthly consumption of 300 kwh
  • P64 for customers with monthly consumption of 400 kwh
With reports from ABS-CBN and GMA News