Monthly bills down 3% in H1

Retail rates decreased to P7.92 per kilowatt-hour (kWh) from the P8.19 per kWh registered in the same period last year

Average retail rates of the Manila Electric Co. (Meralco) dropped by three percent in the first half, pulled by lower charges in generation and transmission of electricity coupled with easing system losses.

In a virtual media briefing, Meralco FVP and Regulatory Management Head Jose Ronald Valles reported that retail rates decreased to P7.92 per kilowatt-hour (kWh) from the P8.19/kWh registered in the same period last year.

Lower generation charges, which represented 57 percent of the total retail price, accounted for the rates reduction.

During the period, generation charges slipped by 1.3 percent to P4.5 per kWh due to the decrease in charges from the Wholesale Electricity Spot Market (WESM), coupled with lower fuel prices, and the peso appreciation.

Refunds help keep rates down

Based on data by the Philippine Statistics Authority (PSA), inflation in the first six months settled at 4.4 percent, as compared with the 2.5 percent in the same period last year.

Meanwhile, the implementation of transmission over-recoveries refund between January and April 2021 coupled with the lower ancillary service charges dragged transmission charges lower by 7.5 percent to P0.73 per kWh. Transmission charges made up nine percent of the total retail price.

System losses, which accounted for three percent of the retail price, were down by 6.8 percent to P0.28 per kWh due to the implementation of system loss over-recoveries refund between January and April, coupled with lower generation and transmission costs.

Distribution charges, on the other hand, inched up by only 0.1 percent as residential sales continued to increase brought about by the imposition of enhanced community quarantine.