MANILA Electric Co. (Meralco) said on Tuesday that electricity rates could go down this month.
“We expect lower rates in October as initial indications show a possible decrease in the generation charge in the October billing,” Meralco Vice President Joe Zaldarriaga said.
“This is primarily driven by lower WESM (Wholesale Electricity Spot Market) charges as prices went down due reduced demand brought about by cooler temperatures in the September supply month,” he added.
“Also contributing to this is the end of the collection of the deferred May 2024 Wholesale Electricity Spot Market costs last month.”
Last June 13, the Energy Regulatory Commission ordered all distribution utilities and electric cooperatives, including Meralco, to stagger the collection of charges covering May WESM up to September.
“Overall, we expect lower WESM charges to offset the impact of the implementation of new Gas Sale Purchase Agreements of First Gas plants Sta. Rita and San Lorenzo with the Malampaya consortium as ordered by the ERC,” Zaldarriaga said.
Last month, Meralco implemented a P0.1543 per kilowatt-hour (kWh) increase that brought the overall rate for a typical household to P11.7882 per kWh, or an additional P31.00 for September.
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