The Manila Electric Company (Meralco) has implemented a rate increase of P0.6268 per kilowatt-hour (kWh) this August, bringing the overall residential rate to P13.2703 per kWh from P12.6435 per kWh in July. This translates to an additional P125 in the monthly electricity bill for a typical household consuming 200 kWh.
Meralco attributed the hike to higher pass-through generation and transmission charges, particularly increased costs from Independent Power Producers (IPPs) and the Wholesale Electricity Spot Market (WESM). IPP charges surged by P0.9476 per kWh, driven by the depreciation of the peso against the US dollar and reduced plant availability during scheduled maintenance. WESM charges also rose by P0.4582 per kWh due to increased unplanned outages in the Luzon grid.
While these increases were partly offset by a P0.2604 per kWh reduction in power supply agreement (PSA) charges due to lower fuel prices and better plant dispatch, they were not enough to prevent the overall rate hike.
Transmission charges also increased by P0.1270 per kWh, following the Energy Regulatory Commission’s approval of the National Grid Corporation of the Philippines’ adjusted revenues and recovery of prior under-collections. Taxes and other charges added another P0.1249 per kWh to the bill.
Meralco clarified that its distribution charge remains unchanged since a downward adjustment in August 2022 and that customers continue to benefit from a distribution-related refund of P0.2024 per kWh.
Separately, the company warned customers against text message scams promising false refunds and urged the public to report electricity theft, which poses safety risks and is punishable by law.
