The Manila Electric Company (Meralco) will impose lower power rates in its franchise areas for the first month of 2025.

Meralco said electricity rate in January is reduced by P0.2189 per kilowatt hour (kWh) to P11.7428 kWh from P11.9617 kWh in December 2024.

Residential customers consuming 200 kWh can expect a P44 reduction on their January 2025 bill.

In a briefing Monday, Meralco vice president and head of corporate communications Joe Zaldarriaga attributed the cheaper electricity rates this month to lower generation charges, which went down by P0.1313 per kWh to P6.8358 per kWh.

The easing of generation fees was mainly due to the decrease of Wholesale Electricity Spot Market (WESM) and independent power producers (IPPs) rates, declining by P0.8840 and P0.1593 per kWh, respectively.

Zaldarriaga added the Luzon grid has better supply amid the 471 megawatts drop in demand.

The appreciation of the Philippine peso against the US dollar also cut IPP charges, as 97 percent of IPP costs were dollar denominated. The lower fuel cost and higher dispatch of the First Gas-Sta. Rita plant also contributed to cheaper IPP charges this month.

On the other hand, charges from power supply agreements (PSA) increased by P0.5638 per kWh due to lower plant dispatch.

Meralco is sourcing 36 percent of its power requirement from PSA, 34 percent from WESM, and 30 percent from IPPs.

“While electricity rates decreased this month, we would like to remind our customers to continue practicing energy efficiency as a way of life especially with the dry season is fast approaching,” Zaldarriaga added.

Meanwhile, transmission and other charges posted a net reduction of P0.0876 per kWh for this month. 

MERALCO PHOTO