Another power rate cut from Meralco this month
Posted on October 8th, 2009
For the month of October, the customers of Manila Electric Co. (Meralco) will get another reduction of 11.55 centavos per kilowatt-hour in their electric bill. This is the biggest power rate cut given by the company in five years.
According to Ivanna de la Peña, vice president and utility economics head of Meralco, said that the lower generation charge this month was due to the lower cost of power obtained from Meralco’s various suppliers for the month of September. She said, “When compared with the level last April, this month’s generation charge is P1.12 per kWh lower.”
Last month, the generation charge was P4.0166 per kWh. For this month, it’s P3.9011 per kWh, the lowest in five years. The previous low was in November 2004 at P4.57 kWh.
The cumulative decrease in generation charge was already at P1.12 per kWh, according to Meralco.
Meralco sourced 32% of its requirements from the National Power Corporation (Napocor) and 13% from the Wholesale Electricity Spot Market (WESM). From the Napocor, the average cost power supplied was lower by seven centavos per kWh, while from WESM, it’s lower by 48 centavos per kWh, which registered an effective rate of only P1.9520 per kWh.
Power sourced from the IPP in September have also lowered cost which dipped by an average of 17 centavos per kWh as a result of over-all higher dispatch, appreciation in peso, and stable fuel cost. Meralco sourced 55% of its power requirements from IPPs
Meralco customers consuming 100 kWh will be saving P4.55 this month, compared to their bills last month, while customers consuming 200 kWh will be saving P15.72 this month.
The company also said that it would be giving some leeway on the payment of bills in areas affected by tropical storm Ondoy.
