Largest power distributor Manila Electric Co. (Meralco) will raise household electricity rates this month, snapping a two-month streak of price declines as higher transmission and subsidy costs outweighed a drop in generation charges.

Meralco announced on Tuesday, Feb. 10, that the overall rate for a typical household will climb by ₱0.2226 per kilowatt-hour to ₱13.1734 per kWh. For a residential customer consuming 200 kWh, the adjustment translates to an increase of approximately ₱45 in this month's bill.

Meralco Spokesperson Joe Zaldarriaga said the uptick was primarily fueled by a ₱0.1975 per kWh surge in transmission charges.

He attributed the move to higher costs for ancillary services—the reserves required to maintain grid stability—following price volatility in the reserves market.

Additionally, the government-mandated universal charge for missionary electrification, which subsidizes power in remote off-grid islands, rose to ₱0.2763 per kWh from ₱0.1993 per kWh.

While grid-related costs spiked, the generation charge—the largest component of the bill—provided a partial buffer by falling ₱0.1073 per kWh. This decline was largely due to a ₱0.8108 per kWh reduction in costs from independent power producers.

Specifically, the First Gas-Sta. Rita plant registered lower fixed fees following the completion of certain cost recoveries approved by the Energy Regulatory Commission (ERC), while a quarterly repricing of Malampaya natural gas also pushed fuel costs lower.

These savings were sufficient to blunt a ₱1.5682 per kWh jump in Wholesale Electricity Spot Market prices and a marginal ₱0.0482 per kWh increase from Meralco’s long-term power supply agreements.

However, consumers face further upward pressure in the coming months as Meralco confirmed it will begin implementing an ERC directive in March to collect a ₱0.01 per kWh uniform national lifeline subsidy charge.

While this adds a slight burden on regular consumers, it is designed to provide a 100 percent discount to low-income households that consume 50 kWh or less.

More significantly, the utility is set to begin recovering ₱31.34 billion related to “change in circumstances” adjustments.

Larry Fernandez, Meralco head of utility economics, said this will result in an additional charge of roughly ₱0.2816 per kWh starting in March, scheduled to take effect immediately after a prior round of cost recoveries concludes this month.