David Autencio

Micro Economics

II- BSBAMM

Mrs. Connie Fernandez

Article: MERALCO POWER RATES DOWN IN MARCH

Manila Electric Co. (Meralco) lowered its overall rates for the month of March compared to
February. The countrys biggest power retailer in terms of sales said the decline in rates for
customers was due to lower generation costs charged by power plant operators, which cited
higher energy sales volume and lower fuel cost.
Meralco said in an advisory that the overall rate for its residential customers this March was
P8.63 a kilowatt-hour (kWh).
This is lower by 19 centavos a kWh compared to last months P8.82.
For a typical household consuming 200 kWh, this translates to a reduction of P38 in their
electricity bill.
The decrease in the overall rates was primarily due a drop of 17 centavos a kWh in the
generation charge compared to last month. It is also P1.21-a-kWh lower compared to March
2015s P5.21. This reduction in the generation charge was primarily due to the higher dispatch of
the plants and, to a lesser extent, the slightly lower fuel cost, Meralco said.
Meralcos distribution, supply and metering charges remained unchanged since having been
reduced in July 2015. The power retailer said it did not earn from the pass-through charges such
as the generation and transmission charges. Payment for the generation charge goes to the power
suppliers while payment for the transmission charge goes to NGCP.

REACTION:
As a consumer of the Meralco company I would appreciate the price decrease for this month
because we know that in our life today money is hard to earn and every peso count. If the
Meralco decrease their price for this month my parents can save more money and invest more in
different things. We know that we cant prevent the price increase of this Manila Electric Co.
(MERALCO) because we dont have a choice and pay for it. We as a consumer we must
conserve our electricity power in order to save more profit from our savings. We must lessen the
usage of our electricity power so save more money the lessen the usage the lessen the amount
that we pay for the service. There is a different ways save electric consumption in our home,
office, etc. we only need is to be efficient in the form of saving power. Some of us dont care if
the Meralco increase the rates and others are not. For our economy we need to invest assets for
the future and save more profit.