Meralco expects lower power rates for April

MANILA, Philippines — Energy utility provider Manila Electric Co. (Meralco) is anticipating a decrease in overall household electricity rates for April, bringing potential relief to its customers.

According to Joe Zaldarriaga, head of Corporate Communications at Meralco, although the final figures are yet to be confirmed, indications suggest a lower power rate for April primarily due to two key reasons.

"We anticipate both lower generation and transmission charges," Zaldarriaga said in a rate indication advisory.

For March, Meralco increased electricity rates by P0.0229 per kilowatt-hour, bringing the overall rate to P11.9397 per kWh from February’s P11.9168 per kWh.

The adjustment resulted in a slight uptick in the total bill for residential customers consuming 200 kWh.

Zaldarriaga explained that they expect a decrease in electricity generation charges, driven by anticipated reductions in costs from natural gas suppliers, influenced by lower liquefied natural gas (LNG) prices.

"Transmission charges, on the other hand, may have lower costs following the Energy Regulatory Commission's order suspending the settlement in the reserve market that drove the significant increase in ancillary service charges in the March electricity rates," he added.

Last month, Zaldarriaga said further increases may be implemented following the “seasonality of consumption” starting in March due to El Niño, and will eventually decrease starting July. 

According to Larry Fernandez, head of utility economics, electricity demand peaks typically occur in May and June, prompting proactive measures to address potential ongoing high consumption beyond these months.