Meralco Rates Slightly Lower in September, Second Consecutive Monthly Drop

The Manila Electric Company (Meralco) on Friday announced slightly lower rates for September, marking the second straight month of reductions, driven by lower costs of support services needed to keep the power grid stable. In an advisory, Meralco said it would lower its rate by P0.0409 per kilowatt-hour (kWh) this month, bringing the September overall electricity rate for a typical household to P14.7424 per kWh from P14.7833 per kWh in August. This translates to an P8-reduction in the total electricity bill for residential customers consuming 200 kWh. "This month's overall rate reduction was mainly due to the decrease in ancillary service charges collected by the National Grid Corporation of the Philippines (NGCP) and lower taxes," Meralco said. Ancillary service charges—billed to customers to keep the power grid stable, safe, and reliable—fell by 33.44 centavos per kWh due to lower charges from the reserve market. Taxes and other charges also posted a 16.57-centavo per kWh net decrease after the Malampaya gas facility completed its maintenance shutdown, enabling plants to fully use natural gas, which is exempt from value-added tax (VAT). This offsets the 42.32-centavo per kWh increase in generation charges, or the pass-through cost for the actual electricity purchased from power suppliers, amid a weaker peso and higher fuel costs as the conflict in the Middle East continues. Meralco constructs, operates, and maintains electric distribution systems in Bulacan, Cavite, Metro Manila, and Rizal, as well as parts of Batangas, Laguna, Pampanga, and Quezon. — VDV, GMA News