MANILA, PHILIPPINES — After a slight reduction in electricity rates last month, the Manila Electric Company (Meralco) announced an upward adjustment of P0.2331 per kilowatt-hour (kWh) this October. This brings the overall electricity rate for a typical household to P13.3182 per kWh, up from P13.0851 per kWh in September.
For residential customers consuming 200 kWh, the rate hike translates to an increase of approximately P47 in their monthly bill.
Rise in Generation Charges Drives Adjustment
Following a P0.2603 per kWh decrease last month, the generation charge for October rose by P0.1903 per kWh.
This increase was mainly attributed to higher costs from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs), which increased by P0.3622 and P0.3567 per kWh, respectively. According to Meralco, the depreciation of the Philippine Peso against the US Dollar significantly impacted generation costs — affecting 99% of IPP charges and 48% of PSA costs.
Additionally, this month’s generation charge includes the effects of the interim extension of Meralco’s power supply agreement with the First Gas-Sta. Rita plant, as approved by the Energy Regulatory Commission (ERC).
Tempering the overall increase, however, were lower charges from the Wholesale Electricity Spot Market (WESM), which dropped by P2.0688 per kWh due to a reduction in Luzon’s peak demand by around 1,000 MW.
For this billing period, Meralco sourced its power requirements as follows: 74% from PSAs, 21% from IPPs, and 5% from WESM.
Transmission and Other Charges Slightly Up
Transmission, taxes, and other charges collectively increased by P0.0428 per kWh. Meralco clarified that generation and transmission charges are pass-through costs paid directly to power suppliers and the grid operator, while taxes and universal charges are remitted to the government.
The company also reiterated that its distribution charge has remained unchanged since the P0.0360 per kWh reduction implemented in August 2022.
Additionally, customers continue to benefit from an ongoing distribution-related true-up adjustment, equivalent to a P0.2024 per kWh reduction for residential users.
Meralco Reminds Public to Observe Electrical Safety Amid Earthquakes
In light of recent seismic activity in various parts of the country, Meralco assured the public that it is actively implementing measures to protect both its infrastructure and the communities it serves.
Safety enhancements include:
- Replacing wooden poles with taller, more durable concrete or steel poles
- Relocating electrical facilities away from high-risk areas
- Regular trimming of trees and clearing of foreign objects near power lines
- Re-insulating conductors and installing shielding on lines
- Upgrading lightning protection systems
- Deploying smart devices for faster outage detection and isolation
Meralco also stands ready to de-energize affected areas if necessary to ensure public safety.
The company urges customers to adopt basic electrical safety practices, especially during disasters:
- Unplug appliances when not in use
- Regularly check cords and wiring for damage
- Know the location of the main switch or breaker for emergencies
After an earthquake, and only when it is safe to do so, customers should:
- Switch off the main breaker
- Unplug all appliances to avoid damage
- Avoid contact with damaged equipment or fallen wires
- Report hazards immediately
Customers may report issues or request assistance through the MyMeralco app, via Meralco’s official social media pages on Facebook (@meralco) and X, formerly Twitter (@meralco), or by texting 0920-971-6211 / 0917-551-6211, or calling the Meralco Hotline at 16211.
