Meralco to cut power rates in May


Posted at May 11 2018 03:37 PM | Updated as of May 11 2018 03:38 PM

Manila Electric Co (Meralco) announced a decrease in overall electricity rates for May 2018, amounting to P0.5436 per kilowatt-hour for a typical household. 

The lower May rate is mainly due to the P0.4212 per kWh decrease in the generation charge. 

The adjustment this month brings the overall rate to P10.0041 per kWh from April's P10.5477 per kWh, equivalent to a decrease of around P109 in the bill of a residential customer consuming 200 kWh.


From P5.4735 per kWh in April, the generation charge for this month will be P5.0523 per kWh. 

Charges from the Wholesale Electricity Spot Market (WESM) decreased by P1.0139 per kWh, despite higher demand for power in the Luzon Grid, because of various power plants previously on scheduled maintenance shutdown going back online. 

The share of WESM purchases to Meralco’s total requirement this month was 22%.

Cost of power from Independent Power Producers (IPPs) also went down by P0.5920 per kWh due to Quezon Power's return to normal operations from its scheduled maintenance. 

The improvement in average plant dispatch more than offset the upward adjustment due to higher Malampaya natural gas prices resulting from the quarterly repricing that reflect recent movement of crude oil prices in the world market. 

IPPs provided 45% of Meralco's total energy requirement.

Meanwhile, purchases from Power Supply Agreements (PSAs) increased by P0.2096 per kWh due to scheduled maintenance outage of Pagbilao Unit 1 and Ilijan Unit 1, and the quarterly repricing of Malampaya natural gas. 

The share of PSA purchases to Meralco’s total requirement this month was 33%.


Transmission charge to residential customers slightly decreased by P0.0096 per kWh. With the lower generation and transmission charges, taxes and other charges also went down, by P0.1128 per kWh this month. 

Meralco's distribution, supply, and metering charges, meanwhile, have remained unchanged for 34 months, after these registered reductions in July 2015. 

Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. 

Taxes and other public policy charges like the FIT-All are remitted to the government. 


As summer is at hand, Meralco once again encourages its customers to continue practicing energy efficiency initiatives to help manage their electricity consumption. 

These include everyday household tips that may help save energy, such as: 

(i) unplugging appliances when not in use to avoid "phantom load",
(ii) using the aircon at mid-setting or at 25 degrees Celsius for maximum efficiency, 
(iii) using a power board or strip which can supply power to several appliances at once and allows a user to conveniently turn them off simultaneously with just one switch, and
(iv) maximizing natural light during daytime and keeping appliances well maintained to ensure optimal performance. 

For more helpful tips, customers may visit Meralco's website or its social media accounts, Twitter and Facebook.

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