Lower electricity rates seen in February

Manila Electric Co. (Meralco) forecasts lower power generation rates for February due to higher demand, according to a company official.

“The initial data suggests that the generation costs for February have a very strong likelihood of a decrease due to higher demand in the Luzon grid in January as compared to December,” Meralco vice president Joe Zaldarriaga said.

He said Meralco is still awaiting all the final billings from the various power suppliers but expects to announce the rates early February.

“With Luzon peak demand in January increasing compared to December 2020, this swing in demand means that the fixed costs from power suppliers may be spread over higher energy volume resulting in lower effective rates to consumers, compared to last month. Given this, charges from PSAs also are projected to decrease,” Zaldarriaga said.

Zaldarriaga also said the net overall power rate decrease since the start of 2020 is at more than P1 per kilowatt hour, with the further projected decrease in the overall power rate of February 2021 continuing this downward trend.

“Given all this, our Meralco rates are at the lowest levels in three years, and may possibly continue to go down in the coming months,” he said.

Meralco is the country’s biggest power distributor with over seven million customers.

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