ELECTRICITY rates for Meralco customers will decline slightly this month as lower ancillary service charges and taxes offset higher generation costs.
The overall rate will decrease by P0.0409 per kilowatt-hour (kWh) to P14.7424 per kWh from P14.7833 per kWh in August, the distribution utility said on Friday.
The adjustment translates to a reduction of about P8 in the monthly bill of a residential customer consuming 200 kWh.
The decrease was mainly due to lower ancillary service charges collected by the National Grid Corp. of the Philippines (NGCP), as well as reduced taxes and other charges, Meralco said.
Ancillary service charges fell by P0.3344 per kWh due to lower costs in the reserve market.
Taxes and other charges posted a net decrease of P0.1657 per kWh, following the completion of the Malampaya gas facility’s maintenance shutdown. This allowed the First Gas/Prime CoreGen plants to fully use indigenous natural gas, which is exempt from value-added tax.
Residential customers also continue to benefit from two refunds totaling P1.0139 per kWh.
These reductions more than offset a P0.4232-per-kWh increase in the generation charge, which Meralco attributed to the peso’s depreciation and higher fuel costs amid the recent escalation of conflict in the Middle East.
The increase was partly tempered by lower charges in the Wholesale Electricity Spot Market (WESM). Average demand on the Luzon grid declined by about 1,200 megawatts because of prevailing weather conditions.
Power supply agreements accounted for about 71 percent of Meralco’s total requirements during the period, followed by First Gas/Prime CoreGen at 24 percent and WESM at 4 percent.
Generation, transmission and ancillary service charges are pass-through costs paid to power suppliers and the NGCP. Taxes, universal charges and other public-policy charges are remitted to the government and relevant agencies.
Meralco said that its distribution charge for a typical residential customer has remained unchanged since August 2022.
