After two months of lower electricity rates, Manila Electric Company (Meralco) announced a small adjustment in power rates for February, mainly due to higher transmission-related charges.
The overall electricity rate increased by ₱0.2226 per kWh, bringing the average residential rate to ₱13.1734 per kWh this month from ₱12.9508 per kWh in January. For households consuming about 200 kWh, this means an increase of roughly ₱45 in the total monthly bill.
The adjustment was largely driven by higher transmission charges, which went up by ₱0.1975 per kWh. This was due to increased ancillary service costs from the Reserve Market incurred by the National Grid Corporation of the Philippines (NGCP), as well as higher power delivery service charges.
Also contributing to the increase was a ₱0.0770 per kWh adjustment in the Universal Charge for Missionary Electrification (UCME), following the Energy Regulatory Commission’s approval of a new rate starting February. The UCME is collected from all on-grid customers to help subsidize electricity costs in remote areas not connected to the main transmission grid. Other charges, including taxes, posted a net increase of ₱0.0554 per kWh.
Helping ease the impact of these increases was a reduction in generation charges, which went down by ₱0.1073 per kWh to ₱7.6398 per kWh. This was mainly due to lower costs from Independent Power Producers, following the completion of fixed fee collections for First Gas–Sta. Rita and the quarterly repricing of Malampaya natural gas.
The decrease in Independent Power Producer charges partly offset higher costs from the Wholesale Electricity Spot Market, which rose due to tighter supply conditions in the Luzon grid, as well as slightly higher charges from Power Supply Agreements linked to planned plant maintenance during the period. These maintenance activities were completed by mid-January in preparation for higher electricity demand during the dry season.
Meralco noted that its distribution charge remains unchanged, following a ₱0.0360 per kWh reduction implemented in August 2022. Charges related to generation and transmission are passed on directly to power suppliers and the grid operator, while taxes, universal charges, and renewable energy subsidies are remitted to the government.
In a related development, the Energy Regulatory Commission has approved a new uniform national lifeline subsidy for marginalized and low-income households, including members of the Pantawid Pamilyang Pilipino Program. Under the new policy, qualified customers consuming 50 kWh or less will receive a full discount on their electricity rates. Meralco will also continue to provide its existing lifeline discounts for qualified customers consuming up to 100 kWh per month.
The new lifeline subsidy rate will take effect in the March billing, while the revised discount structure will be implemented beginning April.
As the dry season approaches and electricity demand typically increases, Meralco reminded customers to practice energy efficiency to better manage their consumption and monthly bills. Customers may report service concerns through the My Meralco app, Meralco’s official social media accounts, by text, or through the Meralco Hotline at 16211.