Following two consecutive months of electricity rate reductions totaling P0.8575 per kWh, the Manila Electric Company (Meralco) announced today an upward adjustment of P0.4883 per kWh—bringing the overall rate for a typical household to P12.6435 per kWh from P12.1552 per kWh in June.
For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around P98 in their total electricity bill.
Higher generation charge triggers overall increase
Driving this month’s overall rate increase was the generation charge, which went up by P0.3407 per kWh.
Charges from Power Supply Agreements (PSAs) and Independent Power Producers (IPPs) increased by P0.4476 and P0.4992 per kWh, respectively, owing to higher fuel prices and weaker Peso against the US dollar. World fuel prices went up in the June supply month in reaction to the Israel-Iran conflict. The impact of higher fuel costs was aggravated by the Peso’s depreciating to its weakest level since March 2025 — affecting around 58% and 99% of PSA and IPP costs, respectively, that were dollar-denominated.
Tempering the increase in the generation charge was the P0.1703 per kWh reduction in charges from the Wholesale Electricity Spot Market (WESM). The supply situation in the Luzon grid improved in June as average demand went down by more than 770 MW, more than offsetting a 490 MW increase in average capacity on outage.
PSAs, IPPs, and WESM accounted for 56%, 28%, and 16%, respectively, of Meralco’s total energy requirement for the period.
Transmission and other charges
Also contributing to the overall rate increase was the transmission charge as it went up by P0.0734 per kWh due to higher charges from the Reserve Market.
Other charges, including taxes, registered a net increase of P0.0742 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.
Customers also continue to benefit from the ongoing implementation of the distribution-related true-up adjustment, equivalent to a reduction of P0.2024 per kWh for residential customers.
Meralco reminds customers to observe electrical safety this rainy season
Meralco reminded its customers to continue observing electrical safety given the increased likelihood of flooding this rainy season.
Customers should turn off the main electrical power switch or circuit breaker in case of flooding and ensure that hands are dry when touching electrical appliances and facilities. All electrical wires, connectors, and other wiring devices should also be always kept completely dry. If outlets or appliances are drenched, it’s best to have a licensed electrician check these before using.
Meralco also advised customers to keep all channels of communication open and ready, and charge mobile phones, laptops, radios, and other communication 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.
