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Manila Bulletin devider Business devider The Economy devider Meralco raises June power rates as grid strain, weak peso bite

Meralco raises June power rates as grid strain, weak peso bite

Published Jun 11, 2026 01:50 pm
After a slight pullback last month, customers should brace for higher electricity prices in June following an upward adjustment in generation charges, according to Manila Electric Co. (Meralco).
Meralco said on Thursday, June 11, that it is increasing electricity rates by ₱0.1488 per kilowatt-hour (kWh) this month, bringing the overall rate to ₱14.4833 per kWh.
This is equivalent to an increase of ₱30 in the power bill of a typical residential household consuming 200 kWh per month.
Meralco spokesman Joe Zaldarriaga attributed the increase to higher generation charges for the month, which rose by ₱0.2762 per kWh to ₱9.0704 from ₱8.7942 per kWh in May.
The generation charge, which accounts for 64 percent of a consumer’s electricity bill, covers the cost of power Meralco purchases from independent power producers and the Wholesale Electricity Spot Market (WESM).
WESM prices increased by ₱7.0281 per kWh due to tighter supply conditions in the Luzon grid, which was placed under yellow and red alerts last month, triggered by strong electricity demand and transmission line trippings.
"If there is a supply constraint, it is reflected in the market. And when you buy from the market under that situation, it usually results in higher costs,” said Zaldarriaga in a press briefing.
He added that elevated fuel prices and the continued depreciation of the Philippine peso against the United States dollar also contributed to the increase in the generation charge.
This was slightly offset by lower line rental and other charges following the lifting of the suspension of WESM operations on May 1, according to Meralco.
The company said the overall increase in power bills this month was tempered by lower transmission charges, which declined by ₱0.1525 per kWh.
Meralco customers also benefited from the implementation of its refund system, equivalent to ₱0.4278 per kWh for residential customers.
For next month, Zaldarriaga indicated that consumers may see lower power bills due to the expected lower electricity consumption during the rainy season.
“That's why to mitigate the impact of higher consumption, we have made every effort to keep rates stable as much as we possibly could,” he said.
Last month, the overall rate for a typical household fell by ₱0.0151 per kWh, bringing the overall rate to ₱14.4396 per kWh.

Related Tags

Manila Electric Co. (Meralco) Wholesale Electricity Spot Market (WESM)
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