Forty-eight on-grid distribution utilities posted residential electricity rates above the national average of PHP 12.43 per kilowatt-hour (kWh) in June 2026, according to an analysis by the Institute for Climate and Sustainable Cities (ICSC).

The findings showed that households in many parts of the country paid more than the national benchmark, with differences in rates linked to power supply agreements, exposure to the Wholesale Electricity Spot Market (WESM), and local operating conditions.

The analysis followed the Department of Energy’s announcement that the Philippines recorded the highest average residential electricity rate in Southeast Asia for June. The DOE attributed elevated prices to tighter supply, prolonged power plant outages, higher fuel costs, and greater reliance on more expensive electricity sources.

Southern Leyte Electric Cooperative posted the highest residential rate among the listed on-grid utilities at PHP 16.57 per kWh. It was followed by Aurora Electric Cooperative at PHP 16.42 per kWh, Leyte IV Electric Cooperative at PHP 16 per kWh, and Northern Samar Electric Cooperative at PHP 15.72 per kWh.

Meralco ranked ninth among the utilities listed by ICSC, with a residential rate of PHP 14.48 per kWh.

ICSC said recurring outages among coal-fired power plants, particularly in the Visayas, pushed WESM prices higher and contributed to recurring grid alerts. Utilities with greater exposure to spot-market purchases were more affected by the price spikes.

In contrast, some utilities with greater access to geothermal power posted lower residential rates. Bohol I Electric Cooperative charged around PHP 10.80 per kWh, while San Jose City Electric Cooperative recorded PHP 9.85 per kWh.

BOHECO I sourced about 91% of its electricity from geothermal power at PHP 4.62 per kWh and around 8.5% from WESM at PHP 21.05 per kWh. SAJELCO, meanwhile, sourced all of its electricity from geothermal power at PHP 5.54 per kWh.

ICSC said these procurement strategies helped shield consumers from higher spot-market prices.

“While recent public discussions have focused on the various charges reflected in electricity bills, the generation charge consistently accounts for the largest share of what consumers pay,” ICSC Energy Transition Advisor Alberto Dalusung III said.

“This highlights the need for a more diversified power mix centered on indigenous renewable energy resources and improved power procurement strategies that prioritizes affordability, energy security, and resilience,” he added.

ICSC said higher electricity costs extend beyond monthly power bills because they can also place upward pressure on the prices of goods and services used by Filipino households.

The group called for more resilient power portfolios among electricity providers, including greater use of indigenous renewable energy and reduced dependence on imported fuels that can expose consumers to price volatility.

Can improved power procurement and a more diversified generation mix narrow the wide differences in residential electricity rates across the country?

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