Meralco announces slight electricity rate decrease for September

Meralco's electricity rates are anticipated to decrease in September, with a reduction of P0.1852 per kilowatt hour (kWh).

This brings the overall power rate to P13.0851 per kWh, down from P13.2703 in August.

Typical households consuming 200 kWh can expect a reduction of P37 in their bill this month.

The decrease is primarily due to a P0.2603 per kWh drop in the generation charge, which constitutes more than half of electricity bills.

The appreciation of the Philippine peso against the US dollar is largely credited for the lower generation charges.

This peso strengthening helped offset the cost recovery for San Miguel Global Power's (SMGP) terminated contracts, a measure approved by the Energy Regulatory Commission (ERC) starting this month.

The ERC had previously authorized SMGP units, South Premiere Power Corp. and Sual Power Inc., to collect a combined P5.1 billion from Meralco over six months.

These SMGP units, along with Meralco, had jointly requested temporary increases in their contract prices citing changed circumstances.