By Arabella Balderama

On Monday, July 10, 2023, the Manila Electric Company (Meralco) announced that the electricity rate this month was reduced by PHP 0.7213 per kilowatt-hour (kWh).

These lowered charges in the July billing period also caused a drop in the power tariff of an average household, totaling to PHP 11.1899 per kWh from PHP 11.9112 per kWh last June.

According to Meralco, consumers who utilize 200 kWh per month should anticipate a PHP 144 decrease in their overall electricity bill.

Due to an excessive demand during the dry season and the expiration of distribution-based refunds, power prices hiked consecutively in May until June before declining this month.

The cost of power obtained from suppliers which accounts for more than 50% of a monthly bill, known as generation charge, was marked down by PHP 0.6436 per kWh in July, resulting in a total charge of PHP 6.6066 per kWh compared to June’s PHP 7.2502 per kWh. 

As per Meralco, this adjustment was caused by lower spot market prices which dipped by PHP 2.6597 per kWh as demand for electricity lessened during the rainy season.

Following the depreciation of coal prices, fees from power supply agreements and independent power producers had decreased by PHP 0.3915 and PHP 0.4658 per kWh, respectively.

Additionally, Meralco said that transmission as well as other charges, including taxes and subsidies, was reduced by PHP 0.0777 per kWh.

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