Tuesday, June 8, 2010

News update Meralco rates cut by P0.10/kWh

MANILA, Philippines - Residential customers of power distributor Manila Electric Co. (Meralco) will see a P0.10 per kilowatt-hour (kWh) reduction in their electricity bills this June, despite an increase in the generation charge.

Meralco Utility Economics head Ivanna dela Peña said the reduction was due to the drop in transmission and system loss charges amounting to P0.1541 per kWh and P0.0282 per kWh, respectively.

"While the generation charge registered an increase of P0.0844 per kWh, this was more than offset by the combined reduction of P0.1823 per kWh in transmission and system loss charges, resulting to a net reduction of P0.0979 per kWh for residential users in these three pass-through charges," she explained.

Dela Peña said residential customers consuming 100 kWh or less would see an P11 drop in their monthly bills.

Those consuming 200 kWh will experience a P27 reduction, while those using 300 kWh will be able to save P40.

Customers are also expected to register lower consumption this June with the onset of the rainy season, according to Meralco External Communications head Joe Zaldarriaga

"With the entry of the rainy season, we expect the hydroelectric plants, which generate much cheaper power, will begin operating at nearly full capacity. The increase in generating capacity combined with lower demand because of the cooler weather is expected to dampen prices in the spot market. Hopefully, these factors can help bring down electricity rates even further," he said.