Manila: The Manila Electric Company (Meralco) has announced a reduction in power rates for September, attributed to a decrease in generation charges. Customers will see a reduction of PHP0.1852 per kilowatt hour (kWh), bringing the rate down to PHP13.0851/kWh.

According to Philippines News Agency, Meralco's vice president and head of corporate communications, Joe Zaldarriaga, revealed that the generation charge fell by PHP0.2603/kWh. This decrease was due to lower costs from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs). However, these reductions were somewhat offset by higher prices in the Wholesale Electricity Spot Market and increased contract prices from producers like Sual Power Inc. (SPI) and South Premiere Power Corporation (SPPC). The price adjustments for SPPC are based on a prior Supreme Court decision that allows power producers to adjust prices to accommodate additional fuel costs.

The Energy Regulatory Commission (ERC), citing the Supreme Court decision, has approved the collection of a total of PHP5.1 billion over a six-month period, starting this September. The PSAs provide the majority of Meralco's supply, accounting for 65 percent, while IPPs contribute 29 percent, and the Wholesale Electricity Spot Market (WESM) makes up 6 percent.

As a result of these changes, residential customers using 200 kWh per month will experience a reduction of PHP37 in their power expenses this month. Zaldarriaga expressed hope that the rate cut, along with relatively lower consumption during this period, will provide relief to customers.