Households served by the Manila Electric Company (Meralco) will see higher electricity bills this April after the utility announced a ₱0.5335 per kilowatt-hour (kWh) increase in residential power rates, raising the overall rate to ₱14.3496 per kWh from ₱13.8161 per kWh in March.
For a household consuming 200 kWh, the adjustment means an estimated ₱107 increase in the monthly electricity bill.
Peso Depreciation Main Driver of Increase
Meralco said the rate hike was primarily driven by the continued depreciation of the Philippine peso against the US dollar, which significantly raised generation costs for dollar-denominated power supply contracts.
The generation charge rose by ₱0.5257 per kWh, climbing to ₱8.3864 per kWh from ₱7.8607 per kWh last month.
For the March supply period, the peso weakened by over ₱3, reaching ₱60.748 per US dollar—its steepest monthly drop since June 2022.
According to Meralco, the peso’s depreciation affected:
- 99% of the costs from First Gas Sta. Rita and San Lorenzo power plants
- 44% of costs under the utility’s other power supply agreements (PSAs) denominated in US dollars
This resulted in higher charges from:
- First Gas: up ₱1.2342 per kWh
- PSAs: up ₱0.1989 per kWh
Meralco said its move to negotiate peso-denominated capital recovery fees for newer suppliers helped cushion the impact on consumers.
WESM Charges Also Rise Amid Tight Luzon Supply
Charges from the Wholesale Electricity Spot Market (WESM) surged by ₱2.3955 per kWh due to tighter supply conditions in the Luzon grid, driven by an average demand increase of 579 megawatts amid the dry season.
Power supply sources for the billing period were composed of:
- 74% from PSAs
- 20% from First Gas
- 6% from WESM
Meralco clarified that the current rate adjustment does not yet reflect potential fuel price increases linked to the ongoing Middle East conflict.
Lower Transmission Charge Softens Increase Slightly
Helping temper the hike, transmission charges declined by ₱0.0656 per kWh due to lower ancillary service charges from the National Grid Corporation of the Philippines (NGCP).
However, other charges—including taxes—posted a net increase of ₱0.0734 per kWh.
Residential customers also continue to benefit from the ongoing Actual Weighted Average Tariff (AWAT) refund of ₱0.2024 per kWh.
Meralco noted that its distribution charge has remained unchanged since the ₱0.0360 per kWh reduction implemented in August 2022.
New Lifeline Discounts Begin This April
Starting this April billing cycle, qualified marginalized and low-income households—including beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps)—consuming 50 kWh or less will receive a 100% discount on electricity rates under the Energy Regulatory Commission’s (ERC) new uniform national lifeline threshold.
Meralco will also continue its expanded lifeline discounts:
- 35% discount for qualified users consuming 51–70 kWh
- 20% discount for those consuming 71–100 kWh
Meralco Urges Energy Conservation
With electricity demand typically rising during the dry season, Meralco urged customers to adopt energy-saving habits to manage consumption and reduce bills.
“Beyond helping manage electricity bills, energy efficiency practices can help mitigate the impact of external factors on electricity costs,” said Joe R. Zaldarriaga, Meralco Vice President and Head of Corporate Communications.
Recommended energy-saving practices include:
- Unplugging appliances when not in use
- Maximizing natural light during daytime
- Setting air conditioners to 25°C
- Cleaning and maintaining cooling appliances regularly
- Avoiding overloading refrigerators
- Ironing clothes in batches
Customers can report their electricity service 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