The Energy Regulatory Commission (ERC) said it has no objection to a proposal by Manila Electric Company to reduce the projected increase in electricity rates for the May 2026 billing period, potentially trimming the generation charge adjustment by more than half.

In a statement issued today, the ERC said Meralco had initially projected a generation charge increase of P1.0277 per kilowatt-hour (kWh), driven by higher electricity supply costs, elevated global fuel prices, and the continued depreciation of the Philippine peso against the U.S. dollar amid geopolitical tensions in the Middle East.

Meralco proposed to mitigate the increase by accelerating the implementation of adjustments under its ERC-approved power supply agreements (PSAs). According to the utility, this would reduce the increase in generation charges to around P0.4350/kWh, or about 58% lower than the original projection.

The ERC said it “raised no objection” to the proposal, subject to verification, review, and the submission of complete supporting documents and reportorial requirements.

Generation charges make up the largest portion of electricity bills and are passed through directly to customers without markup from distribution utilities.

“We understand the burden that rising electricity prices bring to Filipino households, especially during periods of global uncertainty and increasing fuel costs. The ERC continues to work closely with distribution utilities and other industry stakeholders to identify measures that can help reduce the impact on consumers,” ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan said.

“While some costs are driven by international fuel prices and market conditions beyond domestic control, the ERC remains committed to ensuring that all charges passed on to consumers are properly reviewed, transparent, and reasonable. We will continue to pursue timely interventions that balance consumer protection, reliable electricity service, and energy security,” he added.

Juan said the ERC has intensified its oversight of electricity rates during periods of significant price movements. Distribution utilities facing substantial increases in generation charges are required to submit detailed reports and supporting documents so the Commission can evaluate possible mitigating measures.

The Commission said it remains committed to protecting consumer welfare while ensuring stable, reliable, and sufficient power supply as global energy market conditions continue to affect domestic electricity prices.

How significant do you think regulatory interventions like this are in shielding consumers from volatile global fuel prices? Share your insights with us. 

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