Manila Electric Co., the country’s largest power distributor better known as Meralco, announced on Wednesday a reduction in electricity rates, lowering charges by P0.1076 per kiloWatt-hourin June, the second rate reduction in as many months. This brings the typical household rate down to P12.1552 per kWh from P12.2628 in May.
“Our customers will benefit from lower power rates this month, mainly driven by a decrease in generation charges,” said Meralco vice president and Head of Corporate Communications Joe R. Zaldarriaga. “A household consuming 200 kWh can expect to save around P22 on their June bill.”
The generation charge fell by P0.1099 per kWh, now at P7.3552, reflecting lower costs from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM). Specifically, PSA and IPP charges dropped due to reduced fuel costs and higher average dispatch, while WESM rates declined amid improved supply in Luzon’s grid.
Despite a P0.0214 per kWh increase in transmission charges—attributed to higher ancillary service fees from the National Grid Corporation of the Philippines—the overall rate decrease was sustained. Taxes and other fees collectively fell by P0.0191 per kWh.
Meralco’s distribution charge remains unchanged since its reduction in August 2022, with customers continuing to enjoy a true-up adjustment, lowering costs by P0.2024 per kWh.
This rate adjustment underscores Meralco’s responsiveness to shifting market dynamics and ongoing efforts to ease energy costs for consumers amid fluctuating supply conditions.
