MANILA — Manila Electric Company (Meralco) announced an increase in electricity rates this March due to higher pass-through charges from power suppliers and the transmission grid.
The overall electricity rate for a typical household rose by P0.6427 per kilowatt-hour (kWh), bringing the rate to P13.8161 per kWh this March from P13.1734 per kWh in February.
For residential customers consuming 200 kWh, the adjustment translates to an increase of around P129 in their monthly electricity bill.
Transmission and generation charges drive increase
The rate hike was mainly driven by a P0.2880 per kWh increase in transmission charges for residential customers. According to Meralco, the higher cost was largely due to a 70% rise in ancillary service charges incurred by the National Grid Corporation of the Philippines from the Reserve Market, which accounted for nearly half of the total transmission charge for the billing month.
Meanwhile, the generation charge also increased by P0.2209 per kWh, bringing it to P7.8607 per kWh.
Meralco said fixed charges from the second extension of the Power Purchase Agreement with First Gas–Sta. Rita added about P0.38 per kWh to the generation charge. However, this was partially offset by a P1.0952 per kWh reduction in charges from the Wholesale Electricity Spot Market (WESM) due to improved supply conditions in the Luzon grid.
The generation charge also included a P0.2817 per kWh contract price adjustment for power supply agreements with ACEN Corporation, Panay Energy Development Corporation, South Premiere Power Corporation, and Sual Power Incorporated, as approved by the Energy Regulatory Commission.
Other charges, including taxes, posted a net increase of P0.1338 per kWh. The March rate also reflects the implementation of the new uniform national lifeline subsidy rate of P0.01 per kWh, following a directive from the ERC.
Meralco noted that pass-through charges such as generation and transmission costs are paid directly to power suppliers and grid operators, while taxes and universal charges are remitted to the government. The company added that its distribution charge has remained unchanged since August 2022, when it implemented a P0.0360 per kWh reduction for residential customers.
Meralco urges energy efficiency
Amid rising electricity costs and ongoing geopolitical tensions in the Middle East, Meralco is urging consumers to adopt energy-saving measures as the country approaches the dry season when electricity demand typically rises.
The call aligns with President Ferdinand R. Marcos Jr.’s directive encouraging government offices and the public to practice energy conservation amid global fuel market volatility.
Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said consumers can help manage their electricity bills by adopting energy-efficient habits, especially as electricity demand typically increases by 20% to 33% during the dry season due to the higher use of cooling appliances.
Energy-saving practices include unplugging appliances when not in use, maximizing natural lighting, ironing clothes in batches, setting air conditioners at 25°C, and ensuring proper maintenance of appliances such as refrigerators and air conditioners.
Customers may report electricity service concerns through the My Meralco app, Meralco’s official social media channels, or the company’s hotline 16211.
