Where does your electricity bill payment go?

Where does your electricity bill payment go?

The arrival of monthly bills is what every adult anticipates, yet it’s something that has to be faced.

It’s one of their important responsibilities: to make sure those bills are paid so they can continue enjoying the service they’re subscribed to. Among the bills, the most vital ones are those concerning utilities, which include your electricity consumption.

Most of the time, people only look at the total amount that needs to be paid. But as a consumer, it’s essential that you know how charges are broken down. Electricity bills might look complicated at first, but Manila Electric Company (Meralco) explains simply where your payments go in this video:

The power distributor likens the electricity bill to pizza.

Meralco says 54 percent or more than half of the pie is given to generation companies, where electricity comes from. Eighteen percent of your payment is then allotted to Meralco, which distributes the electricity to your home; while 11 percent goes to transmission fees, which covers the delivery of electricity from generators to Meralco’s distribution system. The remaining costs then go to taxes and other miscellaneous fees.

Lower rates this month

Good news greeted Meralco customers this May, as the company announced a rate cut of 41 centavos per kilowatt hour.

This means, a household consuming 200 kilowatts per hour of electricity will be able to save P82, while those consuming as much as 500 kilowatts per hour will see their bills slashed by P206.

Stay in the know

With the El Niño phenomenon still in effect, Meralco warns of possible power interruptions because of high demand. To be updated, Meralco customers can subscribe to the power distributor’s text updates for FREE. Just visit their Facebook page at facebook.com/meralco for more details.