Lower generation charge allowed the Manila Electric Company (Meralco) to reduce power rates this September by P0.1852 per kilowatt hour (kWh), to P13.0851/kWh.

In a briefing Wednesday, Meralco vice president and head of corporate communications Joe Zaldarriaga said generation charge declined by P0.2603/kWh due to lower cost from Independent Power Producers (IPPs) and the Power Supply Agreements (PSAs).

The factors are, however, counted by the higher prices in the Wholesale Electricity Spot Market and the higher contract price set by some of their producers -- Sual Power Inc. (SPI) and the South Premiere Power Corporation (SPPC), with the latter based on an earlier Supreme Court decision allowing power producers to adjust prices to cover additional fuel costs.

Citing the SC decision, the Energy Regulatory Commission (ERC) has approved the collection of a total of P5.1 billion over a period of six months, starting this September.

PSAs account for the largest source of Meralco’s supply, at 65 percent, followed by IPPs, 29 percent, and WESM, 6 percent.

With these changes, residential customers consuming 200 kWh per month will get PHP37 lower power expenses this month.

“We hope that along with relatively lower consumption during this period, this rate cut will bring relief to our customers,” Zaldarriaga said. 

MERALCO PHOTO