The Manila Electric Company (Meralco) raised electricity rates in June after higher wholesale electricity spot market (WESM) prices, rising fuel costs, and the peso’s depreciation pushed up generation charges.

In an advisory on Thursday, Meralco said the overall electricity rate for a typical household increased by PHP 0.1488 per kilowatt-hour (kWh) to PHP 14.4833 per kWh this month from PHP 14.3345 per kWh in May.

For residential customers consuming 200 kWh, the adjustment translates to an additional PHP 30 in their monthly electricity bill.

The increase was driven mainly by a PHP 0.2762 per kWh rise in the generation charge, which climbed to PHP 9.0704 per kWh from PHP 8.7942 per kWh in May.

Meralco said WESM charges increased to PHP 7.0281 per kWh amid tight supply conditions in the Luzon grid. The grid was placed under Red Alert status for three consecutive days from May 13 to 15 after electricity demand surpassed the record level reached in 2024 and generation capacity became constrained following transmission line trippings.

“As a result, the secondary price cap was imposed 3.89% of the time, indicating persistently high spot market prices during the period,” Meralco said.

The company added that charges under its power supply agreements (PSAs) also rose, largely due to the continued depreciation of the peso and higher global coal and liquefied natural gas (LNG) prices.

Excluding line rental adjustments, PSA charges increased by PHP 0.0941 per kWh. Meralco noted that 54% of PSA costs were affected by currency movements.

Meanwhile, charges from the Sta. Rita and San Lorenzo gas plants operated by First Gas and Prime CoreGen declined by PHP 0.1569 per kWh because of improved average dispatch, partially offsetting the impact of higher fuel costs and peso depreciation.

For the billing period, PSAs supplied 69% of Meralco’s energy requirements, while First Gas/Prime CoreGen accounted for 21% and WESM contributed 10%.

Offsetting part of the increase was a PHP 0.1525 per kWh reduction in transmission charges. Taxes and other charges posted a net increase of PHP 0.0251 per kWh.

Consumers also continued to benefit from an ongoing refund equivalent to PHP 0.4278 per kWh for residential customers.

Meralco said its distribution charge has remained unchanged since a PHP 0.0360 per kWh reduction implemented in August 2022.

Apart from the rate adjustment, the utility warned that higher electricity consumption during May’s extreme heat could further increase customer bills.

“While there is an increase in electricity rates this month, elevated consumption patterns observed in May is also a major factor that could drive higher power bills of customers,” said Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga.

Meralco urged consumers to monitor and manage their electricity usage through tools such as the historical bill consumption chart and the Meralco Appliance Calculator.

“In addition, we urge customers to learn how to read their electric meters so they can gain better visibility into their actual consumption, monitor their energy use, and adopt habits that help manage electricity costs more effectively,” Zaldarriaga said.

The utility also reminded customers not to post copies of their electricity bills on social media, citing cybersecurity and privacy risks.

“For concerns on electricity bills, we encourage our customers to get in touch with Meralco through our various customer touch points for assistance,” Zaldarriaga said.

What are your thoughts on the latest increase in Meralco rates and the role of WESM prices and fuel costs in driving electricity bills? Join the discussion.

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