MERALCO commits to lowering power rates for residents

Manila Electric Company (MERALCO) is firm in its commitment to lowering electricity rates for residential consumers, especially marginalized households while promising improved services.

Inquirer reported that this assurance came after Senate Minority Leader Aquilino “Koko” Pimentel III questioned the disparity between rates for residential and commercial consumers. 

Currently, MERALCO charges an average of Php P11.74 per kilowatt-hour (kWh) for residential consumers, compared to Php 10.50 per kWh for commercial clients.

MERALCO explained that serving residential consumers is “more expensive” due to logistical and operational factors, a point supported by Senator Joel Villanueva, sponsor of the bill seeking to renew MERALCO’s franchise for another 25 years.

Pimentel, however, argued that residential rates should logically be lower since households do not operate for profit, unlike businesses. He urged MERALCO to prioritize reducing costs for families.

Meanwhile, Senator Joel Villanueva clarified that the Energy Regulatory Commission (ERC) understands the complexities involved in serving different consumer segments and is aware of the higher costs associated with residential service.

MERALCO, for its part, highlighted its efforts to assist lifeline consumers—those from marginalized sectors—with initiatives to lower their power rates. To this, Villanueva emphasized that the company is aware of its responsibility to improve services and reduce costs as part of its franchise obligations.

Even though MERALCO’s current franchise is valid until June 2028, the law allows renewal applications within five years of expiration. 

The Federation of Philippine Industries (FPI) and the Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCPI) stated that extending MERALCO’s franchise would bolster business confidence, particularly in the manufacturing sector.

As MERALCO’s franchise renewal progresses, consumers are urged to voice their concerns about electricity rates and demand accountability for service improvements. Participate in this discussion by following Power Philippines for more information.