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January 12, 2026 | 1:54pm
Manila Electric Co. (Meralco) workers conduct maintenance work along Magallanes Drive in Manila, June 28.
STAR / Noel Pabalate
MANILA, Philippines — Following a reduction in power rates in December, the Manila Electric Company announced Monday a further decrease of P0.1637 per kilowatt-hour in electricity rates for January 2026.
The adjustment brings the overall rate for a typical household to P12.9508 per kWh, down from P13.1145 per kWh in December, according to Manila Electric Company’s advisory issued Monday, January 12.
For residential customers consuming 200 kWh, the rate cut translates to a bill reduction of about P33, the company said.
Meralco attributed the decrease mainly to a lower transmission charge, which fell by P0.10 per kWh due largely to reduced ancillary service charges incurred by the National Grid Corp. of the Philippines.
The generation charge also declined slightly by P0.0171 per kWh, driven by lower prices in the Wholesale Electricity Spot Market.
Meralco said WESM charges dropped by P1.1898 per kWh amid improved supply conditions in the Luzon Grid, including lower average peak demand and fewer plant outages.
The reduction was also due to the decrease in charges of the Power Supply Agreement, as the San Buenaventura Power Ltd. Co. plant returned to operation following a scheduled outage.
Offsetting factors
The rate cut absorbed an increase in Independent Power Producer charges, which rose by P1.4879 per kWh.
Meralco said the increase stemmed from higher fixed fees at the Sta. Rita plant following confirmation by the Energy Regulatory Commission of contract extensions, as well as the depreciation of the peso against the U.S. dollar.
The company also said January marks the start of the Green Energy Auction Allowance collection, equivalent to P0.0371 per kWh, which will subsidize renewable energy plants in line with ERC directives.
However, Meralco said a net reduction in taxes and other charges amounting to P0.0837 per kWh offset the impact of the new allowance.
