A few days before 2017 ended, it was announced by Meralco that January prices for electricity should be expected to go down in January.
However, CNN Philippines warns the public that although their January bills dropped a bit, they should start saving up because the rates will increase again in January because of the tax reform law.
The reason why January rates fell is that of the reduction in generation charges. The rates were lowered by over P0.52 centavos.
This translate to P105 for the households that consume 200-kilowatt hours (kWh) per month. For those who consume 500 kilowatts per month, on the other hand, will save more than P200 on their January bill.
Meralco states that by February, typical households may expect to pay P16.16 on top of their monthly bill. This is due to the Tax Reform For Acceleration and Inclusion (TRAIN) or what is called tax reform law, which came into effect last January 1, 2017.
In accordance with the law, oil prices hiked up from zero to P2.50 per liter. The same goes with coal, which rose from P10 to P50 per metric ton.
Meralco’s energy, around 32% of it comes from coal, while 0.9 percent comes from oil. This data was taken from November 2017.
Although not as much, the TRAIN law will also be affecting the electricity charges starting in February. The electric company is now encouraging the public to practice energy efficiency to properly manage their electricity consumption.
Summer is fast approaching and the need for cooler environment (e.g. aircon use and electric fan abuse) is coming. It is important to note that although it will be hot during the summer, practicing proper electricity saving management will also help you in the long run.
Meralco reminds their customers to unplug their appliances, use their aircon at mid setting, utilize a power board, and maximize the use of natural light.
Source: CNN Philippines