Power retailer Manila Electric Co. (Meralco) is forecasting lower power rates for April due to lower generation and transmission charges.
“Though we have yet to finalize the final figures, indications point to overall lower power rates this month mainly for two reasons. We see both lower generation and transmission charges,” Meralco vice president and spokesman Joe Zaldarriaga said on Saturday.
He said lower liquefied natural gas prices contributed to the anticipated electricity price reduction, which will be announced next week.
“For generation, we see the cost of natural gas suppliers decrease partly due to lower liquefied natural gas (LNG) prices,” Zaldarriaga said.
“Transmission charges on the other hand may have lower costs following the Energy Regulatory Commission’s order suspending the settlement in the reserve market that drove the significant increase in ancillary service charges in the March electricity rates,” he said.
Meralco is the country’s biggest power retailer with over 7.8 million customers in its franchise area.
Last month, Meralco consumers experienced a minimal increase in the electricity rates of P0.0229 per kilowatt-hour due to higher ancillary charges.
The overall rate for a typical household went up to P11.9397 per kWh from P11.9168 per kWh in February.
Lawrence Fernandez, Meralco vice president and head of utility economics, had said that optimizing its electricity sourcing from various suppliers was part of the company’s day-to-day operations.
However, Meralco warned last month of possible additional increases in electricity charges, especially as hydroelectric plants’ generation is affected by the prevailing El Niño and the summer season.