Implementation of distribution rate true-up adjustment mitigates increase
The Manila Electric Company (Meralco) announced today an upward adjustment of ₱0.7226 per kWh in the April electricity rate, bringing the overall rate for a typical household to ₱13.0127 per kWh this month from ₱12.2901 per kWh in March.
For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around ₱145 in their total electricity bill.
Higher WESM costs trigger generation charge increase
Driving this month’s overall rate was the generation charge which increased by ₱0.7278 per kWh, mainly owing to higher costs from the Wholesale Electricity Spot Market (WESM)
WESM charges went up by ₱3.4205 per kWh due to the tighter supply conditions in the Luzon Grid during the March supply month. Average and peak demand increased by 816 MW and 1,123 MW, respectively, while average capacity on outage was also higher by 979 MW. The Luzon grid was placed on Yellow Alert on March 5 and the secondary price cap was triggered 6.39% of the time, indicating persistently high spot market prices during the period.
Charges from Power Supply Agreements (PSAs) increased by ₱0.2811 per kWh following the expiration of the 400 MW PSA with Limay Power Inc. on February 25.
The increases in WESM and PSA charges were partly tempered by lower charges from Independent Power Producers (IPPs), which went down by ₱0.4738 per kWh due to the appreciation of the Peso against the US dollar. Around 97% of IPP costs were dollar-denominated.
WESM, PSAs, and IPPs accounted for 23%, 44%, and 33%, respectively, of Meralco’s total energy requirement for the period.
Increase in transmission, other charges
Also contributing to the upward adjustment was the ₱0.0809 per kWh increase in the transmission charge for residential customers, due to higher ancillary service charges from the reserve market incurred by the National Grid Corporation of the Philippines (NGCP). This month’s transmission charge also includes the last of three installments of February and March 2024 reserve market transactions for Luzon that the Energy Regulatory Commission (ERC) directed NGCP to collect.
Other charges, including taxes, also registered a net increase of ₱0.1163 per kWh.
Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively; while taxes, universal charges, and Feed-in Tariff Allowance are all remitted to the government.
Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022.
Start of distribution-related true-up adjustment tempers increase
Helping mitigate the overall increase was the implementation of the distribution rate true-up adjustment, equivalent to P0.2024 per kWh for residential customers, beginning this April billing period.
The said adjustment is pursuant to the order of the ERC dated 5 March 2025, provisionally approving the refund amount of ₱19.9 billion. This covers the difference between Meralco’s Actual Weighted Average Tariff (AWAT) and the latest approved distribution rate for the period July 2022 to December 2024. This refund shall be for 36 months or until such time that the amount is fully refunded.
Meralco ready for elections; reminds public to practice energy efficiency
With the approaching midterm elections, Meralco has taken proactive measures to ensure swift response to any electricity service concern that may arise.
“Historically, Meralco’s franchise area has had no problems during the election period but nonetheless, we have prepared contingency plans in case of isolated power outages to ensure that our facilities are ready to respond to any emergency,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said.
The distribution utility has already completed the inspection of over 3,000 polling and canvassing centers and other vital election sites within its franchise area.
“Our crews and personnel will be strategically located all over our franchise area to respond to concerns 24/7 throughout the election period. In addition, we are deploying generator sets and floodlights in key locations as contingency measure,” Zaldarriaga said.
Earlier this year, Meralco participated in the mock elections organized by the Commission on Elections to test its readiness to respond to troubles that could occur during the voting and canvassing process.
The power distributor’s call center group also tested its preparedness to handle outage calls and power concerns reported by election officers during the mock elections.
With the expected increase in household consumption which goes up by 20% to 33% during the dry season due to increased usage of cooling appliances, Meralco also reminded its customers to continue practicing energy efficiency.
Among the practical tips customers can practice are regular cleaning of air conditioner filters, ironing clothes in bulk, refraining from overfilling refrigerators, and using LED bulbs for cost-saving lighting.
Meralco customers can also have better control of their monthly electricity bills with the help of the Meralco Appliance Calculator that provides information on the energy consumption of appliances and gadgets.
Customers can report their concerns through the My Meralco app or through Meralco’s official social media accounts on Facebook (www.facebook.com/meralco) and X formerly Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211 and 8631-1111.
