Utility firm Manila Electric Company (Meralco) sees power rate reductions this month.
The likelihood of a power rate reduction for March 2021 was based on Meralco’s initial projections, and will be the second consecutive month of decrease for the year, according to Meralco spokesperson and vice president for Corporate Communications Joe Zaldarriaga.
“Early indications of generation charge show a possible downward movement due to lower average capacity on outage in Luzon, which may be tempered by the recent peso depreciation,” he said.
But the main contributor to the decrease will be the inclusion of the average refund rate of P0.1528 per kWh, as part of Meralco’s Distribution Rate True-Up.
Last month, Meralco received a copy of the Energy Regulations Commission (ERC) Order dated January 27, 2021 granting Meralco’s petition for the issuance of a provisional authority, with the refund to be implemented in approximately 24 months starting this month.
Meralco’s refund rate will be reflected as a separate line item in the bills of the customers during the refund period, Zaldarriaga pointed out.
“This projected decrease in power rates will continue the downward trend in the cost of electricity, with overall rates having decreased by more than 1 peso per kilowatt hour since the start of 2020.”