Meralco rolls back power rates by P0.2483/kWwh in May

Customers of the Manila Electric Co. (Meralco) should expect lower electricity bills this month as the power distributor slashed power rates by P0.2483 per kilowatt-hour (kWh), resulting from lower demand amid the enhanced community quarantine in Metro Manila.

The adjustment brings the overall electricity rate to P8.7468 per kWh from April’s P8.9951 per kWh.

A typical household consuming 200 kWh can expect a reduction of around P50 in their total bill for May.

“With a total net electricity rate decrease of more than P1 per kWh this year so far, this month’s rate is also significantly lower than that of May 2019, which was P10.2866 per kWh,” Meralco said.

The power distributor said the generation charge decreased by P0.2537 per kWh to P4.3848 per kWh in May from P4.6385 in April.

“Because of the very significant reduction in power demand in its service area during the enhanced community quarantine (ECQ) period, Meralco invoked the force majeure provision in its Power Supply Agreements (PSAs) for the duration of the lockdown, reducing fixed charges for generation capacity that would have been charged by suppliers,” the company said.

April’s generation charge reflected a P129 million reduction in fixed costs due to Meralco’s force majeure claim.

This May, Meralco’s force majeure claim totaled P877 million, equivalent to savings of P0.3452 per kWh, representing reduction in fixed costs and avoided charges from the temporary suspension of the mid-merit supply contracts recently approved by the Energy Regulatory Commission (ERC).

For both April and May billing months, the reduction due to force majeure claims totaled to more than P1 billion.

PSA charges decreased by P0.2116 per kWh mainly due to Meralco’s force majeure claim.

Cost of power from Independent Power Producers (IPPs) also decreased by P0.6418 per kWh due to higher average plant dispatch, lower fuel prices and peso appreciation.

PSAs and IPPs accounted for 52% and 46% of total supply, respectively.

Meanwhile, charges from the Wholesale Electricity Spot Market (WESM) increased by P1.8502 per kWh due to the included line rentals related to Meralco’s supply contracts.

The share of WESM to Meralco’s supply needs was less than 2%.

There was no movement for the Feed-In-Tariff Allowance (FIT-All) for May as the ERC ordered another month of deferral of the FIT-All in consideration of the current ECQ.

Meanwhile, transmission charge registered a slight increase this month by P0.0175 per kWh due to higher ancillary charges, while taxes and other charges registered a net decrease of P0.0121 per kWh.

Meralco said its distribution, supply, and metering charges, meanwhile, have remained unchanged for 58 months, after these registered reductions in July 2015.

Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the National Grid Corp. of the Philippines.

Taxes and other public policy charges like the Universal Charges and the FIT-All are remitted to the government, Meralco said.

Starting May 7, Meralco said its Business Centers have begun opening the branch doors to accept service applications, payments, and other transactions.

To see the full list of opening Meralco branches, and to know when they will be open, customers may visit https://company.meralco.com.ph/faqs-during-covid-19-times for complete details.

Strict safety measures will be implemented, like the “No Mask, No Entry” rule, Social Distancing and Temperature Check, it said.

Frontliners will be available and ready, but will strictly follow social distancing guidelines.

Rest assured that these frontliners have passed the rapid COVID-19 testing authorized by the Pasig City Health Office, according to Meralco.

There are also acrylic barriers set up in the branches to protect both the customer and the frontliner, it said.

For maximum safety and convenience, Meralco encouraged customers to use Meralco Online to transact from the safety of their homes. — RSJ, GMA News