Lower power rates seen next month

The power rate in the Manila Electric Co. (Meralco) franchise is expected to go down next month mainly due to the refund ordered by the Energy Regulatory Commission (ERC).

Meralco vice president and head of corporate communications Joe Zaldarriaga said preliminary assessment points to a reduction in Meralco’s overall rate in March bills.

“Currently, we are still awaiting the final bills from our power suppliers, but based on initial projections, there is a strong likelihood that power rates for March 2021 will go down, as this will be the second consecutive month of decrease for the year,” he said.

The Meralco official said the assessment factored in ERC’s approval of the P13.89 billion refund to Meralco customers over two years.

“Notably, the March power rate will already include the average refund rate of P0.1528 per kilowatt hour (kwh), as part of Meralco’s Distribution Rate True-Up,” Zaldarriaga said.

Last week, Meralco said it received a copy of ERC’s Jan. 27 order granting its application to issue a provisional authority to implement the refund in approximately 24 months starting March. The refund rate will be reflected as a separate line item in the bills of the customers during the refund period as directed by the ERC.

This projected decrease in power rates will continue the downward trend in the cost of electricity, with overall rates having decreased by more than P1 per kwh since the start of 2020, Zaldarriaga said.