Meralco rates up, but not due to oil crisis

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April 11, 2026 | 12:00am

MANILA, Philippines — Meralco customers should brace for higher power rates this month, though the adjustment does not yet reflect the impact of fuel price spikes spurred by the Middle East war.

The company is raising electricity rates by P0.5335 per kilowatt-hour in April, bringing the overall rate to P14.3496 per kWh from P13.8161 per kWh in March.

The adjustment translates to an increase of around P107 in the power bills of typical households consuming 200 kWh a month.

“The primary driver of the adjustment is the generation charge, largely due to the weakening of the Philippine peso vis-à-vis the US dollar,” Meralco spokesman Joe Zaldarriaga told a press briefing yesterday.

The generation charge – which covers the cost of power procured by Meralco from suppliers and accounts for more than half of consumer bills – rose by P0.5257 per kWh or from P7.8607 per kWh to P8.3864.

Zaldarriaga said peso depreciation affected around 99 percent of costs under major natural gas contracts and 44 percent of Meralco’s other dollar-denominated supply deals.

The local currency hit all-time lows during the March supply month, even breaching the P60-per-dollar level.

Also contributing to this month’s rate hike were higher charges in the power spot market, driven by tighter supply conditions in the Luzon grid amid a seasonal increase in demand.

Meralco utility economics head Larry Fernandez said surging oil prices did not affect April power rates, as the company had already secured its fuel imports before the war erupted in late February.