Meralco rates up by P0.72/kWh this month

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April 12, 2025 | 12:00am

MANILA, Philippines — The Manila Electric Co. (Meralco) is increasing its rates by about P0.72 per kilowatt-hour in April, bringing the overall rate to P13.01 per kWh from last month’s P12.29 per kWh.

The adjustment, which was tempered by Meralco’s refund, translates to an increase of around P145 in the electricity bills of typical households consuming 200 kWh a month.

At a press conference yesterday, Meralco spokesman Joe Zaldarriaga said the rate hike was mainly due to higher generation charges, especially in the Wholesale Electricity Spot Market.

In WESM, power rates went up by P3.42 per kWh due to tighter supply conditions in Luzon following increased demand and the shutdown of several power plants.

Charges from power supply agreements (PSAs) climbed by P0.28 per kWh, while the peso appreciation pushed down costs from independent power producers (IPPs) by P0.47 per kWh.

WESM, PSAs and IPPs, respectively, accounted for 23 percent, 44 percent and 33 percent of Meralco’s total energy requirement for the supply period.

Also exerting upward pressure on power rates were higher transmission costs, rising by P0.08 per kWh primarily due to increased ancillary service charges.

Pass-through charges for generation and transmission are paid to power suppliers and the National Grid Corp. of the Philippines, respectively.

Meralco’s distribution charge, on the other hand, has not moved since the P0.036 per kWh reduction implemented in August 2022.

The power rates this month reflect Meralco’s refund of P0.20 per kWh for residential customers, pursuant to an Energy Regulatory Commission order provisionally approving the implementation of a refund totaling P19.9 billion over three years.