ELECTRICITY COSTS in Metro Manila went down this month, with typical households likely to see a P41 cut in their overall bills, according to Manila Electric Co. (Meralco).
The network giant said on Monday that August would fall by P0.2055 per kilowatt hour (kWh) to P8.4911 per kWh.
Power rates continued to decline during the fourth straight month on a relaxed delivery contract due to the impact of the coronavirus pandemic.
Households that consume 300 kWh, 400 kWh and 500 kWh can expect a reduction in their electricity bills by P65.65, P82.2 and P102.75, respectively.
Meralco’s production charges fell for five consecutive months to P4.1241 / kWh, mainly due to lower prices in the wholesale market for electricity (WESM) and natural gas pricing.
It bought delivery from the spot market, which accounts for 15.5% of its requirements, at P1.1200 / kWh. The lower charge is due to the improved supply situation in the Luzon network with lower average plant capacity at downtime.
The company also saw that P0.3284 / kWh reduced the cost of power from independent power producers, which provide 33.9% of the tool’s needs. This is attributed to the decline in natural gas prices as part of quarterly repricing. It noted that the price of its Malampaya gas supply reflected the price of the significant reduction in crude oil prices globally.
Meralco said that purchases from power contracts, which account for more than half of its total delivery needs, decreased due to reduced average plant mailings and a reduction in force majeure receivables. The relaxed contract with First Gen Hydro Power Corp. led to a customer saving of P0.0285 / kWh or approximately P82 million this month.
Since March, its total savings on force majeure have been around £ 1.9 billion.
At the same time, the tool noted a small reduction in transfer fees for its residential customers due to lower extra service fees.
Last week, the listed company said it will continue meter reading activities in its service areas under modified enhanced quarantine in the community, running from 4 to 18 August, to reflect the actual use of power by its customers in their forthcoming bills.
Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is wholly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a stake in Business through the Philippine star group, which it controls. – Adam J. Ang