Manila Electric Co., the country’s largest power distributor and more popularly known as Meralco, said Friday consumers will see in their latest electricity bill an increase P0.4883 per kilowatt-hour (kWh) after two consecutive months of decreases. The increase brings the overall rate for a typical household to P12.6435 per kWh, up from P12.1552 in June.
For residential customers consuming 200 kWh, the adjustment means an estimated P98 increase in their monthly bill.
Meralco attributed the hike mainly to a higher generation charge, which rose by P0.3407 per kWh due to increased costs from Power Supply Agreements (PSAs) and Independent Power Producers (IPPs). These went up by P0.4476 and P0.4992 per kWh, respectively, driven by elevated global fuel prices and the depreciation of the Philippine Peso, which hit its weakest level since March 2025.
The fuel price surge was influenced by ongoing geopolitical tensions, particularly the Israel-Iran conflict. Around 58% of PSA and 99% of IPP charges are dollar-denominated, further amplifying the effect of currency fluctuations.
Partially offsetting the increase was a P0.1703 per kWh reduction in Wholesale Electricity Spot Market (WESM) charges, due to improved supply conditions in the Luzon grid.
The transmission charge also rose by P0.0734, while taxes and other charges added P0.0742. Meralco noted that its distribution charge remains unchanged since August 2022 and customers continue to benefit from a P0.2024 true-up reduction.
