Consumers will experience lower rates this month by P0.2189 per kilowatt-hour due to lower generation charges, which translates to a decrease of around P44 in the total electricity bill of customers with an average consumption of 200 kWh.
Meralco’s overall rate for a typical household went down to P11.7428 in January from the previous month’s P11.9617 per kWh.
The company said the generation charge went down by P0.1313 per kWh to P6.8358 per kWh, primarily due to lower charges from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs), which decreased by P0.8840 per kWh and P0.1593 per kWh, respectively.
Oil firms meanwhile implemented an oil price hike of as much as P0.90 per liter effective 6am Tuesday the second week of consecutive oil price increase due to the volatility in world oil prices.
The oil firms increased the price of diesel by P0.90 per liter and gasoline and kerosene by P0.80 per liter.
Seaoil Philippines, Chevron Philippines and PetroGazz issued separate advisories while the other oil companies are expected to follow suit.
Department of Energy Oil Industry Management Bureau (OIMB) director Rodela Romero said last week the higher pump prices can be attributed to the Organization of the Petroleum Exporting Countries (OPEC) and Russian production data showing both declined in December and a new employment survey from that US that lay offs were low and job openings were growing, suggesting a strong economy.
She said the anticipated rise in Asian demand due to economic stimulus package of China and cold blasts in the US and Europe where several US states have declared a state of emergency further pushed up oil prices.
Jetti Petroleum president Leo Bellas said factors that pushed up prices include worries that Western sanction could limit supply from Russia and Iran, expectations of more fiscal stimulus that could revitalize China’s economy and drive up demand for oil, cold weather in the US and Europe boosting winter fuel demand, and tight regional supply of diesel and gasoline as China’s exports remain low.
Editor’s Note: This is an updated article. Originally posted with the headline “Power rates drop for January 2025—Meralco.”