After two months of lower power bills, Meralco customers are seeing a reversal in February as electricity rates climb on higher grid-related charges.
Manila Electric Co. raised rates by P0.2226 per kilowatt-hour (kWh) this month, pushing the overall residential rate to P13.1734 per kWh from P12.9508 in January. For households consuming 200 kWh, that means paying about P45 more on their February bill.
The increase was driven mainly by higher transmission charges, which jumped by P0.1975 per kWh. Meralco said the spike came from steeper ancillary service fees charged by the National Grid Corporation of the Philippines, along with higher power delivery costs — expenses that are passed directly on to consumers.
Adding to the hike was a higher Universal Charge for Missionary Electrification, which rose by P0.0770 per kWh after regulators approved a new rate. The charge, collected from all on-grid users, helps subsidize electricity in off-grid and remote areas. Taxes and other charges also inched up, contributing another P0.0554 per kWh.
The blow to consumers was partly softened by a drop in generation charges, which fell by P0.1073 per kWh. Lower costs from independent power producers, helped by reduced Malampaya gas prices and the completion of fixed-fee collections for certain power plants, helped temper the overall increase.
Still, gains were pared by higher costs from the Wholesale Electricity Spot Market amid tighter power supply, as well as elevated charges from power supply agreements due to scheduled plant maintenance ahead of the dry season.
Meralco stressed that generation and transmission charges are pass-through costs paid to suppliers and the grid operator, while government-mandated charges go straight to state coffers. Its own distribution charge—the portion that goes to Meralco—has remained unchanged since a cut in August 2022.
