Household electricity rates in the Philippines are expected to decrease in April, providing potential relief to Manila Electric Co. (Meralco) customers. According to Joe Zaldarriaga, Head of Corporate Communications at Meralco, lower power rates are anticipated for April due to expected reductions in both generation and transmission charges.
In March, Meralco increased electricity rates by P0.0229 per kilowatt-hour, resulting in a slight uptick in the total bill for residential customers. However, Zaldarriaga explained that the decrease in electricity generation charges is likely to be driven by lower costs from natural gas suppliers, influenced by reduced liquefied natural gas (LNG) prices. Additionally, lower transmission charges may be expected following the Energy Regulatory Commission’s order suspending the settlement in the reserve market.
Last month, Zaldarriaga warned of potential further increases in electricity rates due to the “seasonality of consumption” starting in March because of El Niño. However, Larry Fernandez, Head of Utility Economics, mentioned that electricity demand peaks typically occur in May and June, prompting proactive measures to address high consumption beyond these months.
