Meralco announces lower power costs this month

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MANILA – Good news for customers of the Manila Electric Co. as the power company recently announced that there will be cut backs on electricity rates by 19 centavos per kilowatt-hour this January because of low cost of coal and adequate power supply last year.

For households that consumer 200 kilowatts per hour (kWh) in a month, they will be seeing at reduction of P38.81 in their bills. Meanwhile, those who consumer 300 kWh will have P58.22 discount every month, said Meralco’s assistant vice president and head of utility economics Lawrence S. Fernandez.

This is the third straight month that Meralco announced reduction in power rates.

However, the electrical company also revealed that this reduction may not be sustained once the summer months kick in especially since the Malampaya gas facility will be closed down by March or April of this year.

In a statement, Meralco on Wednesday said that the generation charge for January is lower by 22 centavos to P4.72 per kWh from last December’s P4.94.

“The reduction in the generation charge was mainly driven by lower charges from the plants under the Power Supply Agreements (PSAs), which registered a reduction of 73 centavos per kWh due to the normal operations of the power plants during the December supply month and the lower cost of fuel. Coal prices of some suppliers went down by almost $2 per metric ton,” Meralco explained in the statement.

For consumers who are planning to buy new appliances, Meralco advised them to get inverter types especially for air conditioners, washing machines, and refrigerators.

While these type of appliances are more expensive, in the long run they are more cost-efficient, according to Meralco.