By Neil A Alcober & Ritchie A Horario/Manila Times
Manila Electric Company (Meralco) bills will fall by 70 centavos per kilowatt hour (kWh) or P140 for an average household with a consumption of 200 kWh.
“Overall rates went down by 70 (centavos) per kilowatt hour (kWh) this May,” Meralco said in a statement yesterday.
The distribution utility said the lower rates resulted from reduced generation charge from all of its supply contracts and decreased trading prices at the Wholesale Electricity Spot Market (WESM).
For 10% of its power requirements, Meralco tapped WESM, which reduced power costs by P4.19 per kWh.
The utility said the decreased Generation Rate Adjustment Mechanism (GRAM) also contributed to the fall of the generation charge, a reduction of six centavos per kWh.
“The effect of the Malampaya shutdown was moderated by lower prices of condensate and natural gas in the April supply month versus March,” it added.
The price of natural gas was reduced by 19% as compared to the previous period after Malampaya natural gas underwent its quarterly repricing to reflect lower cost of fuel.
Meralco also saw price decreases in prices of power it sources from independent power producers at 47% or 75 centavos per kWh and 43% from Power Supply Agreements or 6 centavos per kWh.
