The Manila Electric Company (Meralco) announced a new reduction in electricity rates for January, marking the second month in a row that households will pay less.
The overall rate for a typical household will drop by ₱0.1637 per kilowatt-hour (kWh), bringing it to ₱12.9508 per kWh. For families using around 200 kWh per month, this means a savings of about ₱33 on their electricity bill.
“Bagama’t nagkaroon ng pagtaas sa ilang gastusin nitong Enero, bumaba pa rin ang kabuuang singil sa kuryente — sa ikalawang sunod na buwan kaya naman umaasa kami na makatutulong ito sa aming mga customer sa pagsisimula ng bagong taon,” said Meralco Vice President Joe R. Zaldarriaga.
Why Rates Went Down
The main reason for the lower rates is a drop in the transmission charge, which fell by ₱0.10 per kWh to ₱1.0368. This was due to lower service fees paid by the National Grid Corporation of the Philippines (NGCP).
According to Meralco, generation costs also decreased slightly, dropping by ₱0.0171 per kWh. This was because electricity from the Wholesale Electricity Spot Market (WESM) and some Power Supply Agreements (PSAs) became cheaper.
The WESM rate fell due to a better supply situation in Luzon, while PSA costs went down after the San Buenaventura Power plant resumed operations following a planned outage.
Some costs, however, went up. Independent Power Producers (IPPs) charged more due to higher fixed fees and the weaker peso, since most of their costs are dollar-denominated. For January, WESM, PSAs, and IPPs supplied 7%, 71%, and 22% of Meralco’s energy needs, respectively.
The rate reduction also reflects a slight decrease in taxes and other charges, which helped offset the overall bill.
New Renewable Energy Charge
Starting this month, a new Green Energy Auction Allowance (GEA-All) of ₱0.0371 per kWh will be applied to all on-grid users, Meralco said. This fee helps fund renewable energy projects and will be sent to the National Transmission Corporation (TransCo).
Meralco said distribution charges for residential customers have not changed since August 2022, when they were lowered by ₱0.0360 per kWh.
