MANILA — Manila Electric Company (Meralco) bills will fall by Php0.70 centavos per kilowatthour (kWh) or Php140 for an average household with a consumption of 200 kilowatthours (kWh).
“Overall rates went down by Php0.70 per kilowatthour (kWh) this May,” Meralco said in a statement Friday.
The distribution utility said the lower rates was due to the reduced generation charge from all of its supply contracts and the decrease of trading prices at the Wholesale Electricity Market (WESM).
Meralco tapped WESM for 10 percent of its power requirements, where power costs had a reduction of Php4.19 per kWh.
It added the decreased Generation Rate Adjustment Mechanism (GRAM) also contributed to the generation charge fall, a reduction of Php0.06 per kWh.
Meralco emphasized the Malampaya shutdown was also offset by the lower condenstate and natural gas prices last April compared to March.
The country’s largest distribution utility also saw a decrease on its other sources of power at 47 percent from Independent Power Producers (IPPs) which reduced by Php0.75 centavos per kilowatthour and 43 percent from Power Supply Agreements (PSAs) or Php0.06 per kWh.
Meralco cited the generation charge component fell by Php0.60 centavos per kWh to Php4.81 per kWh from Php5.41 per kWh in April.
Taxes also decreased by Php0.07 per kWh, while other charges had a reduction of Php0.08 per kWh.
The fall resulted in an offset for the increase of the transmission charge.