By Eileen Mencias
Utility giant Manila Electric Co. announced that electricity rates this month would go down by 41 centavos per kilowatt hour due to lower generation charge from its power supply agreements (PSA) and independent power producers (IPP).
The lower rates were also due to lower transmission charges.
Meralco said the rates for a typical household consuming 200kWh would decrease to P9.4523 per kWh in January from P9.8623 per kWh in December 2019. This would reflect a cut of around P82 in a typical household’s total electricity bill.
From P5.1967 per kWh, generation charge went down by 29.28 centavos per kWh to P4.9039 per kwH as the cost of electricity from PSAs declined by 86.59 centavos per kWh and the cost of electricity from IPPs decreaded by 6.34 centavos per kWh.
PSAs account for 49% of Meralco’s total requirement while IPPs account for 41.2%.
The decline from the cost from PSAs and IPPs were more than enough to offset the cost of electricity from the wholesale electricity spot market which increased by P1.7031 per kWh as these account for just around 10% of Meralco’s requirement.