BUSINESS
Advocates Philippines
Lower Power Rates For Meralco Customers This May
Contributed Photo
Meralco customers have something to smile about this month, as the company announced a significant drop in electricity rates for May. The reduction comes to P0.7499 per kWh, which brings down the overall rate for a typical household from P13.0127 per kWh in April to P12.2628 per kWh this month.
If you're using about 200 kWh a month, that means you could see a P150 drop in your bill. According to Meralco's Vice President for Corporate Communications, Joe R. Zaldarriaga, this decrease is mainly due to lower generation and transmission charges.
What's Behind the Rate Cut?
The generation charge for this month dropped by P0.3144 per kWh, bringing it down to P7.4651 per kWh. This was thanks to lower costs from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs).
WESM charges fell by P1.1424 per kWh because of an improved supply situation in the Luzon grid. Even though the grid’s peak demand went up by 1,372 MW, this was more than offset by a reduction of 1,475 MW in average capacity outages.
On the other hand, IPP charges also dropped by P0.9555 per kWh. This was due to better dispatch from IPPs and the strong Peso, which appreciated to its highest level since December 2023. This helped lower the cost of IPP power, which is mostly paid in dollars.
While the Power Supply Agreements (PSAs) saw a slight increase of P0.1884 per kWh, this was mitigated by the stronger Peso, which helped keep things from going higher.
All in all, WESM, IPPs, and PSAs accounted for about 100% of Meralco’s energy requirement for this period.
Transmission and Other Charges Also Go Down
Another reason your bill might be a bit lighter is the P0.2970 per kWh decrease in transmission charges. Meralco explained that this drop was due to lower charges from both the Reserve Market and the National Grid Corporation of the Philippines (NGCP). Additionally, the May transmission charge no longer includes past adjustments for NGCP’s Reserve Market transactions from February and March 2024, which were collected last month.
Other minor charges, including taxes and universal charges, also went down by P0.1385 per kWh.
Good News on the Service Front
On top of lower rates, Meralco also reported no major service disruptions during the May 12 midterm elections. They said that electricity service was generally stable in over 3,000 polling and canvassing centers, and any minor issues were quickly addressed. Zaldarriaga reassured the public that Meralco would remain on standby 24/7, staying alert until the elections were officially concluded.
Keep Saving: Tips for Energy Efficiency
As the dry season continues, Meralco also reminded customers to keep practicing energy efficiency to make the most out of these lower rates. Some simple tips include:
• Regularly cleaning your air conditioner filters and electric fan blades.
• Ironing clothes in bulk instead of one at a time.
• Avoiding overfilling your refrigerator.
• Switching to LED bulbs for energy-efficient lighting.
Meralco also offers an Appliance Calculator tool that can help you keep track of your energy usage, so you can better control your monthly bill.
If you're using about 200 kWh a month, that means you could see a P150 drop in your bill. According to Meralco's Vice President for Corporate Communications, Joe R. Zaldarriaga, this decrease is mainly due to lower generation and transmission charges.
What's Behind the Rate Cut?
The generation charge for this month dropped by P0.3144 per kWh, bringing it down to P7.4651 per kWh. This was thanks to lower costs from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs).
WESM charges fell by P1.1424 per kWh because of an improved supply situation in the Luzon grid. Even though the grid’s peak demand went up by 1,372 MW, this was more than offset by a reduction of 1,475 MW in average capacity outages.
On the other hand, IPP charges also dropped by P0.9555 per kWh. This was due to better dispatch from IPPs and the strong Peso, which appreciated to its highest level since December 2023. This helped lower the cost of IPP power, which is mostly paid in dollars.
While the Power Supply Agreements (PSAs) saw a slight increase of P0.1884 per kWh, this was mitigated by the stronger Peso, which helped keep things from going higher.
All in all, WESM, IPPs, and PSAs accounted for about 100% of Meralco’s energy requirement for this period.
Transmission and Other Charges Also Go Down
Another reason your bill might be a bit lighter is the P0.2970 per kWh decrease in transmission charges. Meralco explained that this drop was due to lower charges from both the Reserve Market and the National Grid Corporation of the Philippines (NGCP). Additionally, the May transmission charge no longer includes past adjustments for NGCP’s Reserve Market transactions from February and March 2024, which were collected last month.
Other minor charges, including taxes and universal charges, also went down by P0.1385 per kWh.
Good News on the Service Front
On top of lower rates, Meralco also reported no major service disruptions during the May 12 midterm elections. They said that electricity service was generally stable in over 3,000 polling and canvassing centers, and any minor issues were quickly addressed. Zaldarriaga reassured the public that Meralco would remain on standby 24/7, staying alert until the elections were officially concluded.
Keep Saving: Tips for Energy Efficiency
As the dry season continues, Meralco also reminded customers to keep practicing energy efficiency to make the most out of these lower rates. Some simple tips include:
• Regularly cleaning your air conditioner filters and electric fan blades.
• Ironing clothes in bulk instead of one at a time.
• Avoiding overfilling your refrigerator.
• Switching to LED bulbs for energy-efficient lighting.
Meralco also offers an Appliance Calculator tool that can help you keep track of your energy usage, so you can better control your monthly bill.
May 13, 2025
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