FOR the second consecutive month, Manila Electric Company (Meralco) has announced a reduction in electricity rates.
Effective June 2025, the rate will decrease by ₱0.1076 per kilowatt-hour (kWh), bringing the overall rate down to ₱12.1552 per kWh from May’s ₱12.2628 per kWh.
This translates to a ₱22 reduction in the average electricity bill for a household consuming 200 kWh. The decrease is primarily attributed to a lower generation charge, which fell by ₱0.1099 per kWh to ₱7.3552 per kWh.
Meralco cites lower charges from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM) as the main drivers of the reduction.
Specifically, PSA and IPP charges dropped by ₱0.3699 and ₱0.1034 per kWh respectively, due to lower fuel costs and improved average dispatch efficiency.
The decrease in WESM charges, down ₱0.6342 per kWh, reflects an improved supply situation in the Luzon grid during May, coupled with a 533 MW reduction in average capacity outage that effectively offset a 527 MW increase in average demand. The consecutive rate decreases offer some relief to consumers amid ongoing economic challenges.
