The National Electrification Administration (NEA) reported that 90 out of 121 electric cooperatives nationwide offered lower electricity rates than Meralco during the first half of the year.

The findings are based on a Philippine Rural Electric Cooperatives Association (PHILRECA)-led comparative analysis of residential electricity rates charged by electric cooperatives and private for-profit distribution utilities from January 2024 to June 2025. The data shows that about 74% of cooperatives posted rates PHP 1.00 to PHP 4.00 per kilowatt-hour (kWh) lower than Meralco’s during the period.

These cooperatives operate in various provinces, including those in BARMM, CARAGA, the Cordillera Administrative Region, and Regions 3, 5, 7, 9, 11, and 12.

“This is something that deserves commendation. The electric cooperatives have proven that they can offer more affordable electricity to Filipino consumers even compared to Meralco,” NEA Administrator Antonio Mariano Almeda said in a radio interview.

Meralco, the country’s largest private distribution utility, currently serves about 8 million customers across 39 cities and 72 municipalities. It operates mainly in highly urbanized and industrial areas with extensive infrastructure.

In July, Meralco implemented a rate increase of PHP 0.4883/kWh, bringing its overall residential rate to PHP 12.6435/kWh.

PHILRECA Party-list Representative Presley De Jesus has previously raised concerns about the cost gap, stating, “If we compare to Meralco, these cooperatives are so small. Meralco holds essentially a mega franchise with the largest captive market.”

What’s driving the cost gap and what lessons can be learned from the co-ops’ pricing strategies? Share your thoughts.

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