Electricity rates in Metro Manila and surrounding areas are expected to ease this January, bringing much-needed relief to consumers as power costs are projected to fall due to lower prices at the Wholesale Electricity Spot Market (WESM). The anticipated cut is a result of improved supply conditions in the Luzon grid, driven by reduced power demand and fewer plant outages.
Joe Zaldarriaga, vice president and head of corporate communications at Manila Electric Co. (Meralco), said, “Indications show a possible decrease in the generation charge in our customers’ bills this January. This will be primarily driven by lower WESM prices due to improved supply conditions in the Luzon grid, as both peak demand and power plant outages dropped in December.”
The decrease in generation charges, should it come to pass, could translate into an overall reduction in Meralco’s electricity rates, benefiting residential and commercial consumers alike.
In December, Meralco implemented a rate hike of P0.1048 per kilowatt-hour (kWh), raising the average cost to P11.9617 per kWh. For a typical household consuming 200 kWh per month, this resulted in an increase of approximately P21.
However, the latest data from the Independent Electricity Market Operator of the Philippines (IEMOP) indicates a sharp decline in WESM prices, which fell by 21.9 percent in December 2024—from P4.42 per kWh to P3.45 per kWh. The price drop, along with a 3.4 percent rise in average power supply, is expected to alleviate the strain on consumers’ electricity bills in the coming month.
With energy costs being a significant concern for households, this projected decrease in rates offers some optimism, particularly after last month’s price increase.
