We are entering the threshold of the most awaited season. The shopping jibe may just be too strong, what with all the mall displays that make us want to part with our cash soonest. Whatever you decide to buy, make every cent of your hard earned money count!
The need for budgeting is the reason why reading the news about the third consecutive monthly decline in electricity rates have us home managers heaving a sigh of relief. Meralco announced the third consecutive monthly decline in electricity rates in October. 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.
These downward movements 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.