Consumers of Manila Electric Co. (Meralco) may expect lower rates in October 2024, after three months of consecutive increases as prices at the electricity spot market dropped amid reduced demand.
“Initial indication shows a possible decrease in the generation charge in the October billing. This is primarily driven by lower WESM [Wholesale Eletricity Spot Market] charges as prices went down due reduced demand brought about by cooler temperatures in the September supply month,” Meralco spokesperson Joe Zaldarriaga said.
Average system-wide WESM declined 34 percent to P3.88 per kilowatt-hour (kWh) during the September supply month from P5.94 per kWh in August on “sustained large system supply margin, primarily because of cooler weather conditions,” according to WESM operator Independent Electricity Market Operator of the Philippines (IEMOP).
System-wide demand went down by 3.4 percent to 13,700 megawatts from 14.186 MW last month, while supply increased 3.2 percent to 20,348 MW from 19,718 MW.
The Luzon grid posted the highest drop in rates by 39.1 percent to P3.80 per kWh from P6.24 per kWh
Luzon power supply went up 4.9 percent to 14,327 MW from 13,657 MW, while demand went down 4.3 percent to 9,746 MW from 10,180 MW.
Zaldarraiga said another contributing factor is the end of the collection of the deferred May 2024 WESM costs last month.
Meralco rates went up in September by P0.1543 per kWh on higher transmission charges attributed to higher ancillary service charges following the resumption of commercial operations of the Reserve Market on Aug. 5, 2024.
This brought the overall rate for a typical household to P11.7882 per kWh in September from P11.6339 per kWh in August.
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