Meralco to reduce its July electricity rates

The Manila Electric Co. (Meralco) will be slashing 24 centavos per kilowatt hour (kWh) off electric bills this month, the company announced in a statement Thursday. According to Meralco, the electricity purchased from the Wholesale Electricity Spot Market (WESM) was cheaper in June, bringing down the generation rates to P5.29 KWh this July from P5.53 last month. WESM rates dropped to P8.41 per kWh in June from P9.92 in May, down P1.51 per kWh. On top of that, power costs from its suppliers also went down, lowering prices this month. “The Independent Power Producers (IPPs), likewise, registered a decline of 3.35 centavos per kWh for the June supply month, due to slightly improved dispatch levels and lower coal prices," said Meralco. Meralco's IPPs — First Gas-Sta. Rita, First Gas- San Lorenzo, and Quezon Power — remain the company’s cheapest source of power. Lower WESM and IPP costs were more than enough to offset the higher cost of power from the National Power Corp. (Napocor), which announced a 17 centavo per kWh increase in the June supply because of a higher share of purchases during peak periods. For June, Meralco sourced 46.83 percent of its power from Napocor, and 47.8 percent and 5.2 percent from IPPs and WESM, respectively. The generation charge, which accounts for nearly 60 percent of an average monthly bill, goes directly to Meralco’s power suppliers, the company said. Power costs can change from month to month because of fuel prices, foreign exchange rates and WESM prices, among others. The company assured consumers that adjustments in the generation costs of suppliers would also be reflected in the customers’ bills, similar to the price cut this July. — BC/VS, GMA News