Electricity consumers served by Manila Electric Company (Meralco) will see higher bills this March after the utility announced an increase of ₱0.6427 per kilowatt-hour (kWh), bringing the overall residential rate to ₱13.8161 per kWh, up from ₱13.1734 per kWh in February.
For a typical household consuming 200 kWh, the adjustment translates to an estimated ₱129 increase in the monthly electricity bill.
Transmission and generation charges drive increase
Meralco said the rate adjustment was mainly driven by higher transmission and generation charges, which are pass-through costs paid to power suppliers and grid operators.
Transmission charges for residential customers rose by ₱0.2880 per kWh, largely due to a 70% surge in ancillary service charges incurred by the National Grid Corporation of the Philippines (NGCP) from the Reserve Market. These reserve costs accounted for nearly half of the total transmission charge for the billing period.
Generation charges also increased by ₱0.2209 per kWh, bringing the rate to ₱7.8607 per kWh.
According to Meralco, fixed charges from the second extension of the Power Purchase Agreement with First Gas–Sta. Rita added around ₱0.38 per kWh to the generation cost.
However, this was partially offset by a ₱1.0952 per kWh reduction in charges from the Wholesale Electricity Spot Market (WESM) as supply conditions in the Luzon grid improved.
The March generation charge also reflected a ₱0.2817 per kWh contract price adjustment approved by the Energy Regulatory Commission (ERC) for contracts with:
ACEN Corporation
Panay Energy Development Corp.
South Premiere Power Corp.
Sual Power Inc.
The adjustment translated to about ₱789 million in generation costs for the billing month.
This impact was more than offset by the completion of the recovery of previous contract price adjustments for South Premiere Power Corp. and Sual Power Inc., totaling ₱858 million, equivalent to roughly ₱0.30 per kWh.
Meanwhile, other charges, including taxes, posted a net increase of ₱0.1338 per kWh.
The March rate also reflected the implementation of a uniform national lifeline subsidy rate of ₱0.01 per kWh, in line with a recent directive from the Energy Regulatory Commission.
Meralco emphasized that its distribution charge has remained unchanged since August 2022, when it implemented a ₱0.0360 per kWh reduction for residential customers.
Meralco urges energy efficiency amid global tensions and dry season
As geopolitical tensions in the Middle East continue to create volatility in global fuel markets, Meralco is urging consumers to adopt energy-saving practices while the Philippines prepares for the dry season, when electricity demand typically peaks.
The call aligns with Ferdinand R. Marcos Jr.’s directive for government offices to implement energy conservation measures and for the public to practice responsible energy use.
Electricity demand historically rises 20% to 33% during the dry season, driven by increased use of cooling appliances such as air conditioners.
“We are entering a period when demand for electricity traditionally peaks, and external factors are adding pressure to energy costs,” said Joe R. Zaldarriaga, Meralco Vice President and Head of Corporate Communications.
“By embracing energy efficiency, consumers can better manage their electricity bills while helping mitigate the impact of external factors on power costs,” he added.
Energy-saving tips for consumers
Meralco recommends several practical steps to reduce electricity consumption, including:
Unplugging appliances when not in use
Maximizing natural lighting during daytime
Ironing clothes in large batches to reduce energy use
Setting air conditioners at 25°C
Maintaining cooling appliances regularly
Avoiding overloading refrigerators to ensure proper air circulation
Customers may report electricity service concerns through the My Meralco mobile app or the Meralco Official Facebook account.