Enjoy the holiday season with one less worry

Changes in Residential Bills
Changes in Residential Bills

MANILA, Philippines – We are on the second “ber” month, and it only gets better as we approach Christmas. Expect revelries to unravel as the holiday season becomes the time for get-togethers among relatives and friends. For the business-minded, it means more opportunities to make money.

If you are the type who loves to throw parties or if you have a backyard business of novelty gifts, for example, you will surely be delighted to know that you have one less thing to worry about, that is, high electricity rates. Electricity bill, after all, makes up a big chunk of the home budget or small business costs.

Just heard the news that Meralco’s electricity rates has declined for the third straight month this October. The company announced that the overall electricity rates for a typical household went down this October by 12 centavos to Php 8.34 per kilowatt hour (kWh).

These downward movements in electricity rates in Metro Manila and nearby 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.

A study by the International Energy Consultants (IEC), which the newspapers picked up, 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. However, the international consulting agency added that Meralco’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.

Being assured of reasonably priced electricity is indeed one less thing to worry about this holiday season. As for now, let us make the most of October.