Expect Possible Lower Rates In January – Meralco

In every household that you get to meet in the Philippines, one of the main concerns of breadwinners is their electricity bill. That is aside from their grocery expenses, water bill, rental expenses and other expenses their family might need.

Electricity bills can be expected to go down at the start of 2018 due to the lower capacity fees from power generators arising resulting from fewer power outages.

Meralco Image
By Judgefloro (Own work) [CC BY-SA 4.0], via Wikimedia Commons
This is the good news that Manila Electric Co. (MERALCO) gave this Christmas season to their customers. The news was shared by Meralco spokesperson, Joe Zaldarriaga to PhilStar.

“Hopefully there will be another reduction in January…if we will use historical records as basis, normally rates are lower in January,”

However, he said that it is still not final as the January rates would still have to factor in the final computation from generators and the transmission operator. Once finalized, then the January bills will reflect the decline.

The reason for the estimated rate reduction in January 2018 is the lower demand for fewer outages from power plants during current supply month.

“Generators are given a particular outage allowance per year,”

The Energy Regulatory Commission approves contracts regarding the capacity fees that are determined through the annual reconciliation of outages allowance that is done every end of the year.

“The generators have a capacity fee per year which is divided by the number of days that they are available,”

For example, if the power generators weren’t able to exceed their outage allowance, but their capacity fees are already paid in full, then it will not be reflected in January anymore. Thus, resulting in a lesser rate.

But the customers are warned that the capacity fees will again normalize the following month. This month, Meralco’s overall rate decreased by P0.3785 per kilowatt-hour (kWh) to P9.2487 per kWh, from P9.6272 per kWh in November.

Source: PhilStar