Power retailer Manila Electric Co. (Meralco) announced Tuesday a reduction of P0.3557 per kilowatt-hour (kWh) in the electricity rate for its consumers this month, driven by lower transmission and generation charges.
Meralco said the overall rate for a typical household declined to P13.1145 per kWh from the previous month’s P13.4702 per kWh.
“For our residential customers with a typical consumption of 200 kWh, this translates to a decrease of around P71 in their total electricity bill this month,” said Joe Zaldarriaga, Meralco vice president and head of corporate communications.
“With the holiday season approaching, we hope this rate adjustment gives much-needed relief for our customers.”
This month’s transmission charge dropped by P0.1462 per kWh for residential customers due to lower ancillary service charges from the reserve market incurred by the National Grid Corporation of the Philippines (NGCP).
The generation charge also went down by P0.1358 per kWh, due to lower charges from Independent Power Producers (IPPs). IPP rates were lower by P0.2127 per kWh following the decline in natural gas prices, improved plant dispatch, and the appreciation of the peso, which affected dollar-denominated supplier costs.
Meanwhile, charges from power supply agreements (PSAs) and the Wholesale Electricity Spot Market (WESM) slightly increased by P0.0706 and P0.8086 per kWh, respectively.
PSA rates rose mainly due to the scheduled maintenance of San Buenaventura Power Ltd. Co. (SBPL) from Oct. 27 to Nov. 25, 2025.
Meralco sourced 21 percent, 73 percent, and 6 percent from its IPPs, PSAs, and WESM, respectively, for the period. Taxes and other charges similarly registered a P0.0737 per kWh net reduction.
Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and feed-in tariff allowance (FIT-All) 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 in August 2022.
