Consumers across the Philippines can expect potential changes in their electricity bills as the Energy Regulatory Commission (ERC) prioritizes key rate adjustments for 2025. The changes, which include the regulatory rate resets for major power utilities like Manila Electric Co. (Meralco) and the National Grid Corporation of the Philippines (NGCP), are set to impact both on-grid and off-grid customers.
ERC chairperson Monalisa Dimalanta bared on Monday of plans to complete rate resets of Meralco and NGCP by mid-2025. The resets are designed to adjust electricity rates in line with actual service costs, factoring in inflation, operational expenses, and the cost of capital. This move comes as the ERC looks to ensure the utility rates remain fair and reflective of current economic conditions.
“For the first semester, we will complete the reset for NGCP and Meralco, and begin addressing requests from other private distribution utilities that have already filed,” Dimalanta said in a briefing.
This shift in power pricing comes with a clear timeline as the ERC looks to arrive at a decision before two of its commissioners, Catherine Maceda and Alexis Lumbatan, end their terms in July. The changes could mean adjusted rates for millions of consumers, especially in areas relying on small power utilities.
In addition to on-grid customers, the ERC is also focusing on off-grid areas, where electricity rates could see phased revisions. Dimalanta said the commission plans to address the pending universal charge for missionary electrification (UCME) petition from the National Power Corporation (NPC) in the first quarter. The charge supports the operations of Small Power Utilities Group (SPUG) plants which provide power to off-grid communities across the country.
Consumers in off-grid areas may see adjustments to their UCME contributions, particularly as NPC requests rate changes to cover rising costs attributed to fluctuations in diesel prices used by off-grid power plants.
As the ERC moves forward with these regulatory actions, both on-grid and off-grid electricity users should be prepared for potential changes to their monthly bills, with some areas possibly facing increased costs to reflect the updated financial and operational realities of their power suppliers.
