MERALCO rate lowered again and lower than other DUs
March 18, 2021The power rates imposed by the Manila Electric Company (MERALCO) have become substantially lower compared to the average rates of other distribution utilities and electric cooperatives operating in the country, and has helped alleviate the general consumer’s burden of soaring prices of goods and services brought about by inflation.
MERALCO has cut its overall rate for the second consecutive month, with a difference of P0.3598/kwh, and settling at approximately P8.3195/kwh which is its lowest rate since August 2017. This charge adjustment will save households that consume at least 200/kwh approximately P72.
The implementation of the Distribution Rate True-Up refund has lowered the current rate, as the Energy Regulatory Commission (ERC) approved its refund of around P13.9 billion over a period of 24 months. This amount represents the difference between the Actual Weighted Average Tariff (AWAT) and the ERC-approved Interim Average Rate (IAR) for distribution-related charges for the period July 2015-November 2020.
This rate decrease is opportune timing consumers who are now coping with high prices of basic necessities like food and transportation.
It is also notable that based on the data released by the Energy Regulatory Commission (ERC), Meralco’s rate of P7.85/kwh ranks a low 77th compared to the rates of other DUs in the country. To compare, the average residential rates of other distribution utilities like the Visayan Electric Company (Veco) and the Pampanga Electric Service Cooperative (Presco) is at P9.33/kwh (28th highest) and P13.33/kwh (2nd highest) respectively.
As the summer months are forthcoming, it will be wise for citizens to be mindful of their electric consumption as electric consumption may go up by 50% during this season. It is expected that household cooling appliances will be used extensively and at full capacity to maintain comfort indoors. It is advised that air conditioning units be set at moderate and comfortable settings of 25 Celsius instead of running full blast for extended hours. Keeping air cooling appliances efficient by keeping these well maintained and clean will also save on power consumption.
We at CitizenWatch call on all DUs to find solutions that will further lower the cost of electricity for their consumers. We hope that MERALCO will continue to push down power costs in these trying times.