Home Business Meralco reduces energy rates for January.

Meralco reduces energy rates for January.

by trpliquidation
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Meralco reduces energy rates for January.

By means of Heroes Joy Talavera Reporter

RESIDENTIAL CUSTOMERS in areas served by Manila Electric Co. (Meralco) will see a reduction in their electricity bills this month, mainly due to lower generation costs for the period.

The overall rate will drop by P0.2189 per kilowatt hour (kWh) to P11.7428 per kWh in January from P11.9617 per kWh in December, the power distributor said in a statement on Monday.

This will translate into a downward adjustment of approximately P44 in the total electricity bill of residential customers consuming 200 kWh. Those who consume 300 kWh, 400 kWh and 500 kWh will see a reduction of P66, P89 and P112 in bills, respectively, this month.

Meralco said it reduced power rates after generation costs dropped by P0.1313 per kWh to P6.8358 per kWh, mainly due to lower costs from the Wholesale Electricity Spot Market (WESM) and independent power producers (IPPs).

WESM rates decreased by P0.8840 per kWh due to the improved supply situation in the Luzon grid as both average peak demand and average peak demandThe age capacity for failure has decreased.

The cost of IPPs decreased by P0.1593 per kWh due to the appreciation of the peso, which affected 97% of the dollar cost. The lower fuel costs and higher deployment of the First Gas-Sta. The Rita factory also contributed to the decline.

The peso closed at P57.845 on December 27, rising by P0.775 from P58.62 on November 29.

“These reductions moderated the P0.5638 per kWh increase in power supply agreement (PSA) costs due to lower plant deployment,” the company said.

WESM, IPPs and PSAs accounted for 34%, 30% and 36% of Meralco’s total energy needs for the period, respectively.

On other components, transmission and other costs decreased by P0.0876 per kWh.

Charges for generation and transport are paid to the energy suppliers and the grid operator respectively. Taxes, universal levies and feed-in tariff surcharges are all paid to the government.

Meralco’s distribution charges have remained unchanged at P0.0360 per kWh since August 2022.

“Although electricity rates have fallen this month, we would like to remind our customers to use energy efficiencyFThe iciness as a way of life comes especially as the dry season quickly approaches,” said Joe R. Zaldarriaga, vice president and chief corporate communications officer for Meralco.

Meanwhile, Meralco customers can expect a slight reduction in their power bills in February as the Energy Regulatory Commission (ERC) earlier ordered distribution companies to refund all collected and unused fees from regulatory experts. All future collection of these costs was also halted.

“For Meralco, this means a one-time refund of 22.6 centavos per kWh plus another refund that will appear as a separate line item in the bill of P0.0023 per kWh. So this will be reflected in February customer bills,” Lawrence S. Fernandez, vice president and head of utilities at Meralco, said at a briefing.

As a reminder, the ERC also allowed the recovery of the remaining P3.277 billion for power generators that supplied the reserve market in February and March 2024.

The approved amount will be billed to consumers in Luzon over a three-month period, with P0.12 per kWh added to transmission charges starting in February.

The reserve market allows the system operator to purchase energy reserves from the WESM to meet the reserve needs of the energy system. Full commercial operations started in January last year.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partially owned by PLDT Inc. Hastings Holdings, Inc., a part of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in Business world through Philippine Star Group, over which it has control.

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