Christmas is just around the corner. And the season has already started to send a lot of cash registers a-ringing. Truth be told, this does not always bode well for us moms who sometimes find ourselves tightening our purse strings just to make both ends meet.
This is why reading the news about the third consecutive monthly decline in electricity rates have us home managers heaving a sigh of relief. Meralco announced that the overall electricity rates for a typical household went down this October by 12 centavos per kilowatt hour (kWh), bringing the rates down to Php 8.34 per kWh.
The downward movement in electricity rates in Metro Manila and adjacent 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.
Recent newspaper reports mentioned a study by the International Energy Consultants (IEC) which 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. But the international consulting agency also pointed out that the power utility’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.
I am just so glad this is the case, and I hope this continues so that the next generation of electricity consumers – our children – will continue to enjoy reasonably priced electricity.