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Manila Electric Co. (Meralco) workers conduct maintenance work along Magallanes Drive in Manila, June 28.
The STAR / Noel Pabalate
MANILA, Philippines — The Manila Electric Company (Meralco) on Tuesday, March 10, implemented an upward adjustment of P0.6427 per kilowatt-hour (kWh) in electricity rates for March 2026.
This brings the overall rate for a typical household to P13.8161 per kWh.
For residential customers consuming an average of 200 kWh per month, this adjustment results in an approximately P129 increase in their electricity bills.
According to Meralco, the primary driver for this month's rate hike is a P0.2880 per kWh increase in transmission charges.
This spike was caused by a 70% surge in ancillary service charges incurred by the National Grid Corp. of the Philippines (NGCP) from the Reserve Market, which now accounts for nearly half of the total transmission cost for the current billing cycle, according to the power concessionaire.
In addition to transmission costs, the generation charge rose by P0.2209 per kWh, reaching P7.8607 per kWh.
Meralco attributed this to fixed charges from the second extension of the Power Purchase Agreement with First Gas-Sta. Rita, which added roughly P0.38 per kWh.
These costs offset a P1.0952 per kWh reduction in charges from the Wholesale Electricity Spot Market brought about by improved supply conditions in the Luzon grid.
The generation charge also reflects a P0.2817 per kWh contract price adjustment from several power providers, including ACEN Corp. and South Premiere Power Corp.
Other factors contributing to the higher March rates include a net increase of P0.1338 per kWh in taxes and other charges.
This month’s billing also implements the new uniform national lifeline subsidy rate of P0.01 per kWh following a recent Energy and Regulatory Commission directive.
Despite these fluctuations in pass-through charges, Meralco pointed out that its own distribution charge has remained unchanged since August 2022.
Meralco also urged consumers to conserve energy due to the ongoing Middle East conflict and the approaching dry season.
According to Meralco, demand historically increases by 20% to 33% during the dry season due to increased usage of air conditioning.
“With higher temperatures forecast to drive increased consumption, households and businesses alike are encouraged to take proactive steps in managing their energy use,” Meralco said.
