Rising tensions in the Middle East have disrupted the supply of goods and oil, prompting Manila Electric Co. (Meralco), the country’s largest distribution utility (DU), to review the cost of liquefied natural gas (LNG), coal, and diesel as these could affect next month’s electricity bills.

Meralco Chairperson Manuel V. Pangilinan said on X that the company is set to monitor its fuel position, as a portion of its natural gas is imported.

“We want to ensure adequate supply of power and manage price volatility as responsibly as possible. [I] have made it clear to the team that we must help protect consumers as cost of goods rises globally,” he added.

About 60 percent of Meralco’s electricity supply comes from natural gas, half of which is sourced from the Malampaya gas field, while the rest is imported.

Meanwhile, around 20 percent of its supply comes from coal, 10 percent from renewables, and another 10 percent from the Wholesale Electricity Spot Market (WESM).

Larry Fernandez, Meralco’s head of utility economics, explained the potential effects of continued tensions in the Middle East.

“If there are constraints on the supply of oil and natural gas, like any other commodity, there’s pressure for prices to go up,” he said in a media briefing on Wednesday, March 4.

“If other sources of energy like oil and gas go up, then there’s also pressure for coal prices to go up. So that’s what we’re waiting for: the impact on the global commodity prices of the situation in the Middle East.”

Fernandez noted that the situation remains fluid, saying it is still a wait-and-see scenario as the company hopes for some leeway for price normalization.

Joe Zaldarriaga, Meralco spokesperson, likewise assured the public that the DU has sufficient supply to prepare for the summer months. He, however, noted that prices have historically increased by certain percentages during the period.

He also advised residents to practice energy conservation to help mitigate potential price shocks over the summer.

Apart from preparing consumers for the impact of higher LNG and coal costs, the Asian Photovoltaic Industry Association (APVIA) said fuel concerns could further accelerate energy transition efforts.

APVIA chair Tetchi Capellan emphasized the need to strengthen the country’s renewable energy (RE) base to enhance energy security and protect consumers from rising fuel costs.

“Solar energy systems [are] modular and quick to install, providing an immediate alternative to rising electricity costs. By pairing these systems with advanced energy storage, we enable consumers to self-generate electricity, peak shave, mitigate the impact of price surges, and ensure an uninterrupted power supply,” she elaborated.