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Manila Bulletin devider Business devider Trade & Industry devider Philreca: 83% of electric co-ops have cheaper rates than Meralco

Philreca: 83% of electric co-ops have cheaper rates than Meralco

Published Aug 5, 2025 04:37 pm
Philippine Rural Electric Cooperatives Association Inc. (Philreca), Manila Electric Co. (Meralco)
Philippine Rural Electric Cooperatives Association Inc. (Philreca), Manila Electric Co. (Meralco)
The Philippine Rural Electric Cooperatives Association, Inc. (Philreca) said that a significant majority of its member cooperatives offer lower average residential electricity rates than the country's largest distribution utility, Manila Electric Co. (Meralco).
According to Philreca's report for the first half of 2025, 101 out of 121 electric cooperatives (ECs), or 83 percent of the total, had cheaper average rates than Meralco.
Meralco has an average residential rate of ₱12.8425 per kilowatt-hour (kWh).
In comparison, many ECs offered much lower rates. For instance, Pampanga Electric Cooperatives, Inc. (PELCO I & II) had rates of ₱8.0850/kWh and ₱9.9616/kWh, respectively, while PELCO III's average rate was ₱11.0971/kWh.
First Laguna Electric Cooperative, Inc. (FLECO) had an average rate of ₱9.7168/kWh, about ₱3 lower than Meralco's. Quezon Electric Cooperatives, Inc. (QUEZELCO I and II) had rates of ₱10.5817/kWh and ₱11.7999/kWh, both still lower than Meralco's. Batangas I Electric Cooperative, Inc. (BATELEC I) and Batangas II Electric Cooperative, Inc. (BATELEC II) posted average rates of ₱10.5817/kWh and ₱11.7999/kWh, respectively.
While these numbers show a clear difference in rates, Philreca noted that they do not fully capture the operational differences between ECs and distribution utilities.
This report comes on the heels of Meralco's recent announcement of a ₱0.4883/kWh rate increase for July. The company attributed the upward adjustment to higher generation charges from power supply agreements and independent power producers, though this was slightly offset by lower costs from the Wholesale Electricity Spot Market.
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