News on lower power rates welcome

Credit to Author: Tempo Desk| Date: Mon, 27 Jan 2020 06:52:09 +0000

 

EDITORIAL edt

THE good news – so welcome at a time when there are so many reports of natural calamities here and violence and a fast-spreading virus abroad – is that Metro Manilans and other customers of the Manila Electric Co. (Meralco) will enjoy a reduction in their electric power bills this January.

Power rates this month are down by 41 centavos per kilowatt-hour (kwh). For a household consuming 200 kilowatt-hours a month, this means a reduction of R82 in its monthly bill.

The monthly decline in power rates was made possible largely by lower generation costs amounting to 29 centavos per kwh, due to Meralco’s power-supply agreements with independent power producers. The Na­tional Grid Corporation of the Philippines also lowered its service charge by 5.17 centavos per kwh. And taxes and other charges have been re­duced by 6.56 centavos per kwh. All these combined to reduce the charg­es for residential customers this January.

This would be a good opportunity for manufacturers to increase their production of essential goods. The lower power rates should help them reduce their overhead and operational costs, that could lead to price re­ductions for their products.

It should also be noted while the prices of nearly everything else have gone up in the last decade, Metro Manila’s power rates have steadily de­clined, so that today they are among the lowest
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