Filipino consumers are getting a welcome reprieve just in time for the holidays as the country’s largest power utility announced a decrease in monthly electricity charges.
In a briefing on Tuesday, Dec. 9, Manila Electric Co. (Meralco) Vice President and Head of Corporate Communications Joe Zaldarriaga reported a ₱0.3557 per kilowatt-hour (kWh) reduction in the overall rate for a typical household, dropping it from ₱13.4702 per kWh to ₱13.1145 per kWh.
Households consuming 200 kWh will save ₱71 on their bills.
“With the holiday season approaching, we hope this rate adjustment gives much-needed relief for our customers,” Zaldarriaga said.
The transmission charge declined by ₱0.1462 per kWh, primarily due to lower ancillary charges from the reserve market.
The generation charge also decreased by ₱0.1358 per kWh, with Meralco’s Independent Power Producers (IPPs) posting lower charges of ₱0.2127 per kWh. The drop in IPP rates was attributed to better plant dispatch and lower natural gas prices.
Peso appreciation also factored into the cost reduction, as Meralco utility economics head Larry Fernandez noted that most suppliers are dollar-denominated.
“Even the Malampaya Natural Gas is priced in dollars,” Fernandez stated, adding that the latest billing reflected the exchange rate on the last banking day of the month, during which the peso appreciated from October to November.
While the net rate is lower, some components increased. Charges from Power Supply Agreements (PSAs) rose by ₱0.0706 per kWh due to the scheduled maintenance of San Buenaventure Power Ltd. Co. (SBPL) from October to November.
Rates from the Wholesale Electricity Spot Market (WESM) also went up by ₱0.8086 per kWh, driven by lower downward adjustments to spot market billing.
Net taxes and other charges declined by ₱0.0737 per kWh, while Meralco’s distribution charge remained steady.
Looking ahead, Zaldarriaga assured consumers that the utility expects rates to remain stable heading into the new year.
“We think the rates will be stable for 2026, given that Meralco has ensured that our supply requirements are covered. There are no drastic adjustments for rates, at least for the first half of the year,” he shared.
“Even without the CSPs [Competitive Selection Process] scheduled this year, Meralco’s exposure has gone down mainly because of the contract with Sta. Rita,” Fernandez added.