Meralco's June electricity rates slashed in unexpected turnaround

In a surprising turnaround, Manila Electric Co. (Meralco) announced a substantial reduction in June electricity rates for its customers, following an order from the Energy Regulatory Commission (ERC) to stagger the collection of generation costs from the Wholesale Electricity Spot Marker (WESM).

The ERC's order, issued on June 13, directed all distribution utilities and electric cooperatives in the country to collect charges covering WESM purchases in four equal monthly installments from this billing month until September 2024. As a result, Meralco customers can now expect a decrease of P1.9623 per kWh in their electricity rates this June instead of the earlier announced increase of P0.6436 per kWh.

This adjustment brings the overall rate for a typical household to P9.4516 per kWh, down from P11.4139 per kWh in the previous month. For residential customers consuming 200 kWh, the decrease amounts to around P392 in their total electricity bill.

The reduction in the electricity rate for June primarily reflects a decrease of P1.8308 per kWh in the generation charge, while transmission charges and feed-in tariff allowances remain unchanged at P0.1450 per kWh and P0.0474 per kWh, respectively. Taxes and other charges also see a net reduction of P0.3239 per kWh.

In a statement, Joe R. Zaldarriaga, Meralco spokesperson, said the power retailer is committed to implementing the ERC’s order and ensuring customers have ample time to pay their bills with adjusted due dates.

However, Zaldarriaga cautioned customers to expect an increase in generation charges over the next three months as deferred amounts are collected on a staggered basis. 

The recent developments will add an additional P0.77 per kWh to the generation charge in the July to September bills.