One major ingredient of progress is reliable power supply. As the country’s largest power utility, Meralco has been doing a great job in ensuring this.
Adding more reasons to love our electric distribution utility is the steady decline in cost of electricity, which makes up a big chunk of the home budget.
Meralco’s electricity rates has declined for the third straight month this October. The company announced that the overall electricity rates for a typical household went down this October by 12 centavos per kilowatt hour (kWh).
These downward movements in electricity rates in Metro Manila and nearby provinces, which comprise Meralco’s franchise areas, are not new. In fact, these have been a trend in the past four years, with Meralco customers enjoying some of the largest tariff reductions worldwide, which enabled the current affordable power rates.
A study by the International Energy Consultants (IEC), which the newspapers picked up, affirms the lower tariffs of Meralco in recent years. It showed that, in local currency terms, Meralco’s average tariff (excluding VAT) has declined since January 2012 by 28 percent versus an average decline of only 19 percent across 44 markets.
IEC said that lower fuel costs, mainly coal, was a major contributor to the lower power prices. However, the international consulting agency added that Meralco’s sourcing strategy, a lower distribution charge, and lower system loss were also major contributors to the decline. These accrued to benefits for Meralco customers, who collectively were able to save around Php 30 billion in power costs.
Being assured of reasonably priced electricity is indeed one less thing to worry about this holiday season. As for now, let us make the most of October.