Power Rates Down Again This June

The Manila Electric Company (Meralco) announced earlier this month that power rates have decreased by P0.0216 per kilowatt hour (kWh) for a typical household.

From last month’s P8.7468 per kWh to P8.7252 per kWh this June, the reduction is equivalent to around P4 in the total bill of residential customers consuming 200 kWh.

According to Meralco, there has been three straight months of generation rate reduction, and a total rate decrease of more than one peso per kWh since the start of the year.

The country’s largest power distribution utility also reported that this month’s total rate is also significantly lower compared to that of June 2019, which was P10.0918 per kWh. This month’s total rate is also the lowest since February 2018.

Meralco also shared its instalment programs for bills affected by the Enhanced Community Quarantine (ECQ) to provide customers relief in managing their electricity bills - https://youtu.be/wXqmuNnItbw.

Lower Generation Charge as MERALCO Claims Force Majeure

From P4.3848 per kWh last May, the generation charge decreased by P0.0435 per kWh to P4.3413 per kWh this June. Generation charge is a component of our electricity bill which is paid to power generation companies. 

Meralco also said that because of the very significant reduction in power demand in its service area during the Enhanced Community Quarantine (ECQ) and Modified ECQ period, the distribution utility invoked the Force Majeure provision in its Power Supply Agreements (PSAs) for the duration of the lockdown. The meant a reduction in fixed charges for generation costs that would have been charged by its suppliers.

Because of this, the Force Majeure claim totalled P614 million, equivalent to customer savings of P0.2208 per kWh. Without these Force Majeure claims, the generation charge and the total rate would have increased by 18-centavos and 24-centavos, respectively, from last month’s rate. For the past 3 months, the savings due to Force Majeure claims totalled around P1.6 billion.

Movements in Other Charges

Other charges registered an increase of P0.0219 per kWh. This was mainly due to the resumption of the P0.0495 per kWh Feed-In-Tariff Allowance (FIT-All).  The ERC suspended the collection of FIT-All for April and May billing months in consideration of the ECQ. On the other hand, ERC suspended the collection of Universal Charge-Environmental Charge amounting to P0.0025 per kWh beginning this June, until further notice.

Meralco’s distribution, supply, and metering charges have remained unchanged for 59 months, after these registered reductions in July 2015. Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. These generation charges are paid directly to power generation companies while the transmission charge goes to the National Grid Corporation of the Philippines (NGCP). Taxes and other public policy charges like the Universal Charges and the FIT-All are remitted to the government.

Meralco keeps its doors open for customers during General Community Quarantine (GCQ)

Customers may visit their nearest Meralco Business Center, which will continue to open its doors during the ongoing GCQ, and accept service applications, payments, and other transactions.

Strict safety measures continue to be implemented, like the “No Mask, No Entry” rule, Social Distancing and Temperature Check. Visitors are assured that Meralco frontliners have passed the rapid COVID-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in the Meralco branches to protect both the customer and the staff.

For safety and convenience, Meralco still encourages customers to use Meralco Online to transact from the safety of their homes. Multiple options for transactions have also been offered, including the Meralco Mobile App via https://onelink.to/meralcomobile, Meralco Online via www.Meralco.com.ph, and the Meralco authorized payment channels at bit.ly/MeralcoPaymentPartners.

For more information and concerns, customers may visit Meralco’s website at www.MERALCO.com.ph, its social media accounts, twitter @MERALCO and Facebook at www.facebook.com/MERALCO or may also call the Meralco Hotline at 16211.