Power retailer Manila Electric Co. (Meralco) took back its announcement on the increase in household rates for June due to the implementation of a staggered collection of generation costs from the Wholesale Electricity Spot Market (WESM).
In an advisory released on Sunday, June 16, households served by Meralco can now expect a decrease of P1.9623 per kWh in their electricity rates this June instead of the earlier announced increase of P0.6436 per kWh.
“In its order promulgated on June 13, the Energy Regulatory Commission (ERC) ordered all distribution utilities and electric cooperatives in the country, including Meralco, to stagger the collection of charges covering WESM purchases in the May supply month in four (4) equal monthly installments starting this billing month until September 2024,” Meralco said.
The new rate has dropped to P9.4516 per kWh, down from last month’s P11.4139 per kWh for an average household.
Meralco indicated that for residential customers using 200 kWh, this adjustment translates to an approximate reduction of P392 in their overall electricity bill.
Additionally, Meralco mentioned that the current month’s adjusted rate includes a P1.8308 per kWh decrease in the generation charge.
However, Meralco cautioned that due to the deferral of collection, this will affect the rates in July.
“We would like to advise this early that our customers can expect generation charge to increase in succeeding months as we collect the deferred amounts on staggered basis as result of the recent developments,” Meralco vice president and head of corporate communications Joe Zaldarriaga said.
“With these already deferred costs, and the recent order of the ERC to also stagger the collection of WESM charges, around P0.77 per kWh will be added every month to the generation charge in the July to September bills,” Zaldarriaga added.
Meralco, Quezon Power (Philippines) Ltd., San Buenaventura Power Ltd. Co., and South Premiere Power Corp. have postponed P500 million in generation costs to mitigate the impact of increased pass-through charges on Meralco’s customers.
These deferred costs will be spread out over the next three billing periods, as approved by the ERC. (TCSP)
