January 10, 2025 | 12:00am
MANILA, Philippines — Power distribution giant Manila Electric Co. (Meralco) has indicated a possible decline in the overall electricity rate this month due to the decrease in generation costs.
Citing improved supply situation in the Luzon grid, Meralco spokesman Joe Zaldarriaga said the lower generation charge was mainly driven by the drop in wholesale electricity spot market (WESM) prices.
“We expect the lower generation charge to lead to an overall rate reduction in this month’s electricity rates,” Zaldarriaga said.
The generation charge, which makes up more than 50 percent of the electricity bill, covers the cost of power procured by Meralco from WESM, independent power producers and power supply agreements.
The Independent Electricity Market Operator of the Philippines (IEMOP) said the average price of electricity in Luzon WESM went down by 23 percent to P3.26 per kilowatt-hour last December from the preceding month’s P4.24 per kWh.
At the system-wide level, WESM rates plunged by 21.9 percent to P3.45 per kWh from P4.42 per kWh on a monthly basis on the back of higher supply and lower demand across all regions.
Meralco, meanwhile, is expected to announce the January rate adjustment next week.
Last month, the company hiked its power rate by about P0.10 per kWh, largely due to increased generation costs, which offset the decline in the transmission charge.
Meralco provides electric service to eight million customers within its franchise coverage that includes Metro Manila and nearby provinces.
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