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February 11, 2025 | 2:15pm
Meralco personnel confiscate illegal wiring connections in Barangay Paradise, Balot, Tondo, Manila on March 11, 20233.
STAR / Ernie Penaredondo
MANILA, Philippines — Electricity rates are set to rise this February for Manila Electric Company (Meralco) consumers.
Meralco announced on Tuesday, February 11, a P0.2834 per kilowatt-hour (kWh) increase, raising the overall rate to P12.0262 per kWh from P11.7428 per kWh.
With the adjusted rate, a household consuming 200 kWh will see its monthly bill rise to P2,405.24 from P2,348.56, reflecting an additional cost of approximately P56.68.
Meralco estimated the added expenses for February based on consumption levels as follows:
- 200 kWh - P56.68
- 300 kWh - P85.02
- 400 kWh - P113.36
- 500 kWh - P141.7
The electric distribution company, however, observed a decline in power demand on the Luzon grid, with average demand dropping by 585 megawatts (MW) and peak demand decreasing by 802 MW.
This suggests that electricity bills may not rise if power consumption remains lower or continues to decline, offsetting the increase in power rates.
“One of the major determinants of our electricity bills is consumption. And it's true that from January to March, with the cooler weather, consumption will decrease,” Meralco Vice President Joe Zaldarriaga said at Tuesday’s press conference.
Meralco attributed the rate hike primarily to higher generation charges, which cover the cost of purchasing power from suppliers.
Generation charges rose by P0.385 per kWh in February, driven by higher costs from independent power producers (IPPs) and power supply agreements (PSAs), which account for 29% and 43% of the energy supply, respectively.
PSA costs increased by P0.084 per kWh, rising from P7.433 per kWh in December to P7.516 per kWh in January. Meanwhile, IPP costs surged by P0.836 per kWh from P9.645 per kWh.
The remaining 28% of the power supply comes from the Wholesale Electricity Spot Market (WESM), which saw a P0.301 per kWh decrease.
Other factors contributing to the electricity bill hike include taxes, which rose by P0.077 per kWh, and other pass-through charges, which increased by P0.0519 per kWh.
A larger reduction, however, helps offset these increases, as regulatory reset fees dropped by P0.229 per kWh. This follows the Energy Regulatory Commission’s (ERC) directive for Meralco to refund about P987 million in unutilized regulatory reset fees to households within a month.
Transmission charges also saw a minimal decrease of P0.0013 per kWh, while Meralco’s distribution fee remained unchanged.
The rate adjustment is calculated by summing the changes in generation, transmission, and distribution costs, along with regulatory reset fees, taxes and other pass-through charges.
Meralco has filed a refund application with the Energy Regulatory Commission (ERC) to return P19.1 billion to customers over three years, translating to a P0.19 per kWh reduction. The refund will take effect once approved for implementation.
