Power rates will go down by 13 centavos this month due to lower generation and transmission costs according to the Manila Electric Company (Meralco).
This means that a typical household consuming 200Kw per month will save P26.00 in their electricity bill, and P65.00 for those using 500Kw.
This is the second month that Meralco slashed its rates reporting a net decrease of P130.
But the firm warned that rates will likely go up in July due to the yellow alert warning issued by the National Grid Corporation.
A yellow alert is raised if there is a significant increase in demand against a very low power reserve
“In both cases either the capacity goes down or the demand goes up, price pressure will go upwards in both factors so generally when there is a yellow alert there’s also pressure for spot market prices to go up,” said Utilities and Economics head, Larry Fernandez
Meralco also said that an additional 7-centavos will be imposed because of the feed-in tariff this month.
Under the Philippine Renewable Energy Act of 2008, the feed-in tariff is a policy mechanism designed to accelerate investment in Renewable Energy Technologies by offering cost-based compensation and long-term contracts.
Participating entities are assured fixed payments from each type of renewable energy source for 20 years.
However, the group Laban Konsyumer has filed a motion before the energy regulatory commission questioning the what they call as unreasonable additional fit rate.
“When rate increases, it is a public interest. This is not a procedural requirement only that must be published. This is important for the consumers so they would know what they are paying for,” said Laban Konsyumer president, Vic Dimagiba
If the petition gets junked, the group will elevate it to the Supreme Court. — Mon Jocson | UNTV News & Rescue