Customers of&nbsp;&nbsp;Manila Electric Company (Meralco) can take a sigh of relief after the company announced another slash in its electricity rate for the month of August.&nbsp;
In an advisory on Wednesday, Meralco announced that&nbsp;it lowered its rate by P0.2908 per kilowatt-hour (kWh) in August, bringing the overall rate for a typical household to P10.8991 per kWh from P11.1899 per kWh in July.
For residential customers consuming 200 kWh, the adjustment is equivalent to a decrease of around P58 in their total electricity bill.
With the latest adjustment, Meralco said the combined reduction over the past two months now stands at P1.0121 per kWh.
&nbsp;The power distributor said its generation charge registered its third consecutive reduction this month, as it went down by P0.2137 to P6.3929 per kWh from P6.6066 per kWh in July.&nbsp;
"Charges from the Wholesale Electricity Spot Market (WESM) dropped by P1.2873 per kWh as average demand in the Luzon grid fell by more than 200 MW due to the rainy season. The decrease in spot market prices also reduced the imposition of the secondary price cap to 2.41% of the time in the July supply month from 9.21% in the previous month. Meralco sourced around 17% of its total energy requirement from WESM during the period," Meralco said in a statement.&nbsp;
Meanwhile, it added that charges from Power Supply Agreements (PSAs) also went down by P0.1688 per kWh due to lower fuel prices and the Peso&rsquo;s appreciation which affected around 26% of PSA charges that are dollar-denominated.
&ldquo;The reductions in WESM and PSA charges offset a slight P0.0853 per kWh increase in charges from Independent Power Producers (IPPs), due to lower average IPP dispatch as several units of First Gas-Sta Rita and First Gas-San Lorenzo underwent scheduled outage during the July supply month,&rdquo; the company said.<iframe id="google_ads_iframe_/344684475/GNO_Money_Desktop_Outstream_0" tabindex="0" title="3rd party ad content" role="region" name="google_ads_iframe_/344684475/GNO_Money_Desktop_Outstream_0" width="1" height="1" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" aria-label="Advertisement" data-google-container-id="3" data-gtm-yt-inspected-7="true" data-gtm-yt-inspected-15="true" data-load-complete="true"></iframe>
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The power distributor added that mitigating the impact of reduced dispatch was the decrease in the price of Malampaya natural gas following its quarterly repricing, and the peso appreciation that affected around 97% of dollar-denominated IPP charges.
PSAs accounted for 47% of Meralco&rsquo;s total energy requirement for this period, while IPPs covered the remaining 36%, it added.&nbsp;
Transmission and other charges, which include taxes and subsidies, also registered a net reduction of P0.0771.
The power distributor noted that the collection of the Feed-In Tariff Allowance (FIT-All), at the rate of P0.0364 per kWh, remains suspended until this August 2023 billing month as directed by the Energy Regulatory Commission.
"Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively; while taxes, universal charges, and FIT-All are all remitted to the government," it continued.&nbsp;
&nbsp;Meralco&rsquo;s distribution charge, meanwhile, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning in August 2022.
Lifeline discount
Following the new rules for the implementation of the lifeline rate program, Meralco reminds its qualified customers, particularly beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) and other marginalized households, to apply for the program to get discounts on their electricity bills.
Starting September 2023, only customers with approved applications will continue to benefit from the lifeline rate discount in accordance with the implementing rules and regulations of Republic Act No. 11552 or the law extending and enhancing the implementation of the lifeline rate.
To encourage more customers to apply, Meralco has been conducting barangay caravans and on-site applications.&nbsp; Eligible customers can also apply by visiting the nearest Meralco Business Center together with their completed application form, latest electricity bill, and 4Ps ID.
For non-4Ps beneficiaries, a local social welfare and development office certification, and government ID are needed. Applicants can also take advantage of the dedicated lanes for the lifeline rate program applications.
For more information on the lifeline rate program, customers can visit the Meralco website (<a href="http://www.meralco.com.ph/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=http://www.meralco.com.ph&amp;source=gmail&amp;ust=1691642453074000&amp;usg=AOvVaw3fyW4y9vudl5oa2o4kUvVr">www.meralco.com.ph</a>) and official social media accounts on Facebook (<a href="http://www.facebook.com/meralco" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=http://www.facebook.com/meralco&amp;source=gmail&amp;ust=1691642453074000&amp;usg=AOvVaw3ENHgu8ke46nw5OCwvGp_n">www.facebook.com/meralco</a>) and Twitter (@meralco).
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Meralco announces low rates by P0.29 centavos for August