In a statement on Monday, Meralco announced a reduction in electricity charges this December, setting a cut of ₱0.7961 per kilowatt-hour (kWh).
According to Meralco, the power rate will decrease from ₱12.0545 per kWh in November to ₱11.2584 per kWh this month.
The decrease in charges is a result of lower fees from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs), the statement added.
“WESM charges decreased by ₱2.7624 per kWh due to the improved supply situation in the Luzon grid, where demand decreased by around 421 MW, and the average plant capacity on outage decreased by about 679 MW,” explained Meralco.
“Charges from IPPs, meanwhile, went down by ₱0.4731 per kWh due to the reduced use of more expensive liquid fuel by First Gas plants and lower international coal prices,” it added.
WESM and IPPs collectively contribute 20% and 32%, respectively, to Meralco’s energy requirement for December.
The remaining 48% comes from Power Supply Agreements, which saw a slight increase of ₱0.0805 per kWh in charges, according to Meralco’s statement.
This reduction in charges will bring significant relief to Meralco customers this Christmas. Despite the challenges facing the economy, it will provide additional funds for various family needs as the holiday season approaches.
In general, this brings hope to the citizens that there can still be good news and positive changes in their daily lives.