In a recent development, Manila Electric Company (Meralco) has announced a decrease in power rates for the month of June. This adjustment comes as a result of the staggered collection of generation costs from the Wholesale Electricity Spot Market (WESM), following an order from the Energy Regulatory Commission (ERC).
The ERC’s order, issued on June 13, directed all distribution utilities and electric cooperatives in the country to stagger the collection of charges covering WESM purchases from the May supply month. This will be done through four equal monthly installments starting this billing month until September 2024.
Meralco Vice President and Head of Corporate Communications, Joe Zaldarriaga, emphasized the importance of customer understanding during this transition. He assured customers that adjusted due dates will be implemented to allow sufficient time for bill payment.
As a result of these changes, there will be a significant decrease of P1.9623 per kiloWatt-hour (kWh) in power rates for June, instead of the previously announced increase of P0.6436 per kWh. This brings the total rate for an average household down to P9.4516 per kWh, compared to last month’s P11.4139 per kWh.
While this decrease is welcome news for consumers, Meralco anticipates a higher generation charge in the coming months. Zaldarriaga warned that an additional charge of around P0.77 per kWh can be expected from July to September as deferred costs are collected on a staggered basis.
Meralco, along with Quezon Power (Philippines) Ltd., San Buenaventura Power Ltd. Co., and South Premiere Power Corporation, had previously delayed P500 million in generation costs to mitigate the impact of increased pass-through charges on customers.
