Meralco announced a slight reduction in electricity rates for May, bringing relief to consumers despite higher generation costs driven by market and fuel pressures.
The overall rate for a typical household decreased by ₱0.0151 per kWh, bringing the May rate to ₱14.3345 per kWh from ₱14.3496 per kWh in April.
“Despite initial indications of an increase, Meralco power rates this May had a modest reduction. This was achieved through proactive efforts led by the Energy Regulatory Commission (ERC) to cushion the impact of potentially high rates amid geopolitical tensions affecting energy prices,” said Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga.
He noted, however, that customers may still see higher bills due to increased consumption during the summer months.
ERC Measures, Refunds Help Offset Cost Pressures
According to Meralco, the decline was driven by Energy Regulatory Commission (ERC)-approved mitigating measures, which helped offset higher generation charges.
A key factor was the acceleration of ongoing refunds, raising the refund rate for residential customers to ₱0.4278 per kWh from ₱0.2024 per kWh, following the ERC directive to return the remaining ₱14.2 billion over 12 months instead of two years.
Taxes and other charges also posted a net decrease of ₱0.1482 per kWh, supported by the suspension of the ₱0.0371 per kWh Green Energy Auction Allowance (GEA-All) for May to June 2026, and the partial impact of the VAT exemption on indigenous natural gas under Republic Act No. 12120.
Transmission charges likewise declined by ₱0.0493 per kWh, further easing overall rates.
Higher Generation Costs Still Drive Up Base Charge
Despite the overall slight reduction, Meralco’s generation charge rose to ₱8.7942 per kWh from ₱8.3864 per kWh, driven mainly by higher Wholesale Electricity Spot Market (WESM) prices and fuel-related increases.
WESM charges surged by ₱7.7239 per kWh, largely due to line rental components. However, ERC-approved caps under Power Supply Agreements (PSAs) helped offset these costs, with suppliers absorbing a portion of the charges and reducing PSA costs by ₱0.1793 per kWh.
Meanwhile, electricity from the Sta. Rita and San Lorenzo gas plants of First Gas/Prime CoreGen increased by ₱0.1786 per kWh, reflecting higher fuel costs and peso depreciation affecting dollar-denominated expenses.
Meralco’s power supply mix for the period came from PSAs (73%), WESM (7%), and First Gas/Prime CoreGen (20%).
Energy Conservation Remains Key
Meralco reiterated its reminder for consumers to practice energy efficiency, especially during the dry season when electricity use typically rises.
“By being more mindful of power consumption and practicing energy efficiency, customers can better manage their electricity bills,” Zaldarriaga said.
The utility also encouraged customers to use tools such as the Meralco Appliance Calculator and digital platforms like the My Meralco app for monitoring consumption.
Customers can report their concerns through the My Meralco app or through Meralco’s official social media accounts on Facebook and X formerly Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211.