After July hike, Meralco says August electricity rates may go down

Lower LNG prices and reduced demand during the rainy season could help ease power rates, while the utility says its facilities are prepared for typhoon season.

Following the announcement of a rate hike for July electricity consumption, the Manila Electric Company (Meralco) said August rates may provide some relief for consumers.

Meralco head of utility economics Larry Fernandez said the arrival of new fuel supply could contribute to lower electricity rates in August.

He said the liquefied natural gas (LNG) currently being used by power plants was purchased back in May, when global fuel prices were at their peak due to the conflict in the Middle East.

“Hopefully for this month, we’ll see newer LNG purchases for the power plants which we hope are lower than the LNG prices that we experienced in prior months,” Fernandez said at a briefing on July 10.

With the onset of the rainy season, the concessionaire also expects lower demand to help bring down rates.

However, facility damages due to storms could also impact distribution. Despite the threat of interruptions, Meralco assured customers that its facilities are “ready more than ever” to withstand the weather.

“We have invested heavily on our distribution network and systems, we have a manpower complement that is ready to meet any weather disturbance. We have braced for many instances of typhoons that have been part of the situation we face every year,” said Meralco spokesperson Joe Zaldarriaga.