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Meralco cuts electricity rates by P0.08/kwh in Jan

abs-cbnNEWS.com | 01/07/2009 5:05 PM

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Manila Electric Co. announced Wednesday that it will cut electricity rates by eight centavors per kilowatt hour (kWh) this month.

Meralco chief for utility economics Ivanna dela Pena said the rate adjustment was due to very low prices in the Wholesale Electricity Spot Market (WESM) and the use of its banked gas from affiliate First Gas last December.

The low prices in the WESM last December was brought about by low demand during the Christmas holidays, as well as the cold weather.

"The sharp decline in cost from these sources cushioned the upward adjustment in National Power Corp. (Napocor)'s GRAM and ICERA ordered by the ERC last December and the collection of the P2.11 billion unbilled line congestion cost for July 2008 which was already paid to the PEMC on schedule last August 2008," de la Pena said. Report from Alvin Elchico, ABS-CBN News