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Manila Bulletin devider Business devider The Economy devider Meralco lowers power rates for second straight month in June

Meralco lowers power rates for second straight month in June

Published Jun 11, 2025 01:58 pm

The Manila Electric Company (Meralco) announced a second consecutive month of electricity rate reduction this June, driven primarily by a decrease in the generation charge.

In a briefing, Joe R. Zaldarriaga, Meralco vice president and head of corporate communications, said the overall electricity rate for a typical household decreased by ₱0.1076 per kilowatt-hour (kWh), bringing the rate down to ₱12.1552 from ₱12.2628 per kWh in May.

Zaldarriaga noted that a typical household consuming 200 kWh would see an approximate ₱22 decrease in their June electricity bill.

The main driver behind this month's rate reduction is a ₱0.1099 per kWh decrease in the generation charge, bringing it to ₱7.3552 per kWh. According to Meralco, this reduction was primarily due to lower charges from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM). 

PSAs and IPPs saw charges decrease by ₱0.3699 and ₱0.1034 per kWh, respectively, attributed to lower fuel costs and higher average dispatch.

WESM charges also dropped by ₱0.6342 per kWh due to an improved supply situation in the Luzon grid during May. Zaldarriaga said this improvement was a result of a 533 MW reduction in average capacity on outage, which offset a 527 MW increase in average demand. 

PSAs, IPPs, and WESM accounted for 48 percent, 33 percent, and 18 percent of Meralco’s total energy requirement for the period, respectively.

While the generation charge decreased, the transmission charge increased by ₱0.0214 per kWh due to higher ancillary service charges from the National Grid Corporation of the Philippines’ (NGCP) Ancillary Service Procurement Agreements and the Reserve Market. However, this was more than offset by the reduction in the generation charge. 

Other charges, including taxes, registered a net decrease of ₱0.0191 per kWh. 

Meralco stated that its distribution charge has remained unchanged since August 2022, and customers continue to benefit from an ongoing distribution-related true-up adjustment, which provides a ₱0.2024 per kWh reduction for residential customers.

Meralco reminded qualified customers to apply for available subsidy mechanisms such as the lifeline rate program and the senior citizen discount. 

Meanwhile, theNGCP reported a drop in the wheeling rates during May at ₱0.4593/kWh.

Wheeling rates are charges for transmitting power from plants to distribution utilities (DU) through the grid.

The ancillary services (AS), however, increased to ₱0.5655/kWh.

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Manila Electric Co. (Meralco)
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