Meralco bills down for 2nd successive month in June

Consumers can again expect lower electricity bills as the Manila Electric Company (Meralco) on Monday announced a P0.58 per kilowatt hour (kWh) rate cut this June, citing the lowest generation charge in 56 months.

 

The biggest reduction in overall rates was due to the lower generation charge which decreased by P0.36 per kWh – the lowest level since October 2010.

 

This means the monthly bill for a typical household consuming 200 kWh will go down by P116, and by P290 for households consuming 500 kWh.

 

Last month, Meralco implemented a P0.70 per kWh reduction equivalent to a P1.28 per kWh rate cut over the past two months.  

 

Larry Fernandez, Meralco head of Utility Economics, explained the reduction was mainly driven by lower charges from generating companies under the Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) due to lower fuel costs and higher dispatch.

 

The natural gas power plants Ilijan, First Gas-Sta. Rita and First Gas-San Lorenzo started operating on less expensive natural gas when the maintenance shutdown of supplier Malampaya ended in May.

 

"In the May supply month, both plants were able to run generally on Malampaya natural gas, which is cheaper than the alternate liquid fuel," Fernandez said. 

 

In addition to the generation charge, the transmission charge also registered a decline of P0.09 percent kWh. Taxes and other charges also went down by a total of P0.13 per kWh.

 

Joe Zaldarriaga, Meralco Public Information manager, reiterated the company does not earn from generation and transmission charges as these are pass-through costs. The generation charge goes to the power suppliers, while the transmission charge goes to the National Grid Corporation of the Philippines, the company operating and maintaining the power transmission lines in Luzon.

 

ERC approves rate hike

 

It's not all good news for consumers.

 

Meralco customers should can also expect a rate increase starting this month as the Energy Regulatory Commission (ERC) gave the company the authority to collect its under recovered pass-through charges amounting to P3.4 billion.

 

The rate increase translates to a P0.04 per kWh starting this June until Meralco has fully collected the amount.

 

"Na-abonohan na po namin ito... Ngayon ho nabigyan kami ng regulator ng authority to collect it, 'yung 4 centavos over a period of more than a year," Zaldarriaga noted.

 

Calls for refund

 

Earlier on Monday, militant group Bayan Muna rallied in front of a Meralco branch in Quezon City.

 

The militants called for Meralco to refund consumers at least P10 billion  in overcharged billing during the Malampaya shutdown in 2013 when electricity prices spiked to an all-time high.

 

"We are now working on our petition to ask the Supreme Court to make the temporary restraining order it issued last year permanent and to order Meralco to immediately refund its consumers." Bayan Muna Rep. Neri Colmenares said in a statement. 

 

For Meralco, calls for refund at this point is premature.

 

"Sa ngayon ho kasi, absent the decision and absent the completion of legal process, siyempre hindi pa ho tayo makakakilos batay na rin sa sinasaad sa batas," Zaldarriaga said. 

 

Meralco intends to wait for Supreme Court decision. – VS, GMA News