BUSINESS
Advocates Philippines
Meralco Customers To See Lower Power Rates In September
FILE
The Manila Electric Company (Meralco) has announced a decrease of P0.1852 per kWh this September, bringing a welcome reduction in electricity bills for its customers. This adjustment lowers the overall rate for a typical household to P13.0851 per kWh, down from P13.2703 per kWh in August.
For a residential customer consuming 200 kWh, this translates to a savings of P37 on their total electricity bill. According to Joe R. Zaldarriaga, Meralco's Vice President, this rate cut is expected to provide some relief to customers, especially when coupled with relatively lower consumption during the current period.
What Caused the Rate Reduction?
The primary reason for the lower rates is a significant drop in the generation charge, which decreased by P0.2603 per kWh. This charge accounts for the cost of electricity Meralco buys from its suppliers.
The reduction is mainly attributed to two factors: the appreciation of the Philippine Peso against the US Dollar and a decrease in international fuel prices. A stronger local currency makes it cheaper for Meralco to pay for the fuel and other costs of its power suppliers, particularly the Independent Power Producers (IPPs) and Power Supply Agreements (PSAs), as a large portion of their expenses are dollar-denominated.
While the Wholesale Electricity Spot Market (WESM) charges saw an increase, and a new contract price adjustment for certain suppliers (Sual Power, Inc. and South Premiere Power Corporation) began, the savings from the stronger peso and lower fuel costs were more than enough to offset these increases.
Meralco Reminds Customers to Practice Safety and Efficiency
With the rainy season continuing, Meralco is also reminding customers to prioritize electrical safety, especially in areas prone to flooding. Key safety tips include switching off the main power switch or circuit breaker during floods, keeping hands dry when handling electrical appliances, and ensuring all electrical wires and outlets are completely dry before use.
Meralco also encourages customers to practice energy efficiency to better manage their consumption. Simple tips like cleaning air conditioner filters and electric fan blades, and using energy-saving LED bulbs can lead to further savings. Customers can also use the Meralco Appliance Calculator to track their energy usage.
For a residential customer consuming 200 kWh, this translates to a savings of P37 on their total electricity bill. According to Joe R. Zaldarriaga, Meralco's Vice President, this rate cut is expected to provide some relief to customers, especially when coupled with relatively lower consumption during the current period.
What Caused the Rate Reduction?
The primary reason for the lower rates is a significant drop in the generation charge, which decreased by P0.2603 per kWh. This charge accounts for the cost of electricity Meralco buys from its suppliers.
The reduction is mainly attributed to two factors: the appreciation of the Philippine Peso against the US Dollar and a decrease in international fuel prices. A stronger local currency makes it cheaper for Meralco to pay for the fuel and other costs of its power suppliers, particularly the Independent Power Producers (IPPs) and Power Supply Agreements (PSAs), as a large portion of their expenses are dollar-denominated.
While the Wholesale Electricity Spot Market (WESM) charges saw an increase, and a new contract price adjustment for certain suppliers (Sual Power, Inc. and South Premiere Power Corporation) began, the savings from the stronger peso and lower fuel costs were more than enough to offset these increases.
Meralco Reminds Customers to Practice Safety and Efficiency
With the rainy season continuing, Meralco is also reminding customers to prioritize electrical safety, especially in areas prone to flooding. Key safety tips include switching off the main power switch or circuit breaker during floods, keeping hands dry when handling electrical appliances, and ensuring all electrical wires and outlets are completely dry before use.
Meralco also encourages customers to practice energy efficiency to better manage their consumption. Simple tips like cleaning air conditioner filters and electric fan blades, and using energy-saving LED bulbs can lead to further savings. Customers can also use the Meralco Appliance Calculator to track their energy usage.
Sep 10, 2025
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