Meralco sees lower power rate in April

Customers of power distributor Manila Electric Company (Meralco) may breathe a sigh of relief as the power distributor is expecting a lower overall household rate for April.

In a rate indication advisory, Meralco Corporate Communications head Joe Zaldarriaga said that "though we have yet to finalize the final figures, indications point to overall lower power rate this month mainly for two reasons."

"We see both lower generation and transmission charges," Zaldarriaga said.

In March, Meralco raised its household power rate by 2.29 centavos per kilowatt-hour (kWh) for March, bringing the overall rate to P11.9367 per kWh from P11.9168 in February. The upward adjustment translated to an increment of nearly P5 in the total bill of residential customers consuming 200 kWh.

"For generation charge, we see the cost of natural gas suppliers decrease partly due to lower liquefied natural gas (LNG) prices," Zaldarriaga said.

"Transmission charges, on the other hand, may have lower costs following the Energy Regulatory Commission's order suspending the settlement in the reserve market that drove the significant increase in ancillary service charges in the March electricity rates," he added.

Lawrence Fernandez, Meralco vice president and head of utility economics, had said that optimizing its electricity sourcing from various suppliers was part of the company's day-to-day operations. However, Meralco warned last month of possible additional increases in electricity charges, especially as hydroelectric plants' generation is affected by the prevailing El Niño and the summer season. — VDV, GMA Integrated News