THE Manila Electric Company (Meralco) yesterday announced another reduction of P0.2908 per kWh in the electricity rate this August, bringing down the overall rate for a typical household to P10.8991 per kWh from P11.1899 per kWh previously.

For residential customers consuming 200 kWh, the adjustment is equivalent to a decrease of around P58 in their total electricity bill.

With the latest adjustment, the combined reduction over the past two months now stands at P1.0121 per kWh.

The generation charge registered its third consecutive reduction this month, as it went down by P0.2137 to P6.3929 per kWh from P6.6066 per kWh in July.

Charges from the Wholesale Electricity Spot Market (WESM) dropped by P1.2873 per kWh as average demand in the Luzon grid fell by more than 200 MW due to the rainy season. The decrease in spot market prices also reduced the imposition of the secondary price cap to 2.41% of the time in the July supply month from 9.21% in the previous month. Meralco sourced around 17% of its total energy requirement from WESM during the period.

Charges from Power Supply Agreements (PSAs) also went down by P0.1688 per kWh due to lower fuel prices and the Peso’s appreciation which affected around 26% of PSA charges that are dollar denominated.

Transmission and other charges, which include taxes and subsidies, also registered a net reduction of P0.0771.

Meralco’s distribution charge, meanwhile, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022.

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Arlene Rivera