After two consecutive months of rate reductions, the Manila Electric Company (Meralco) has announced an increase in electricity rates for July 2025 because of a rise in generation charges.

The overall rate for a typical household has gone up by PHP 0.4883 per kilowatt-hour (kWh), bringing the new rate to PHP 12.6435 per kWh from June’s PHP 12.1552 per kWh. For residential customers consuming 200 kWh, this equates to an increase of around PHP 98 in their total monthly bill.

Meralco attributed the hike primarily to the PHP 0.3407 per kWh increase in generation charge. This was driven by costlier power from Power Supply Agreements (PSAs) and Independent Power Producers (IPPs), with increases of PHP 0.4476 and PHP 0.4992 per kWh, respectively. The rise was due to elevated fuel prices and the continued depreciation of the Philippine Peso against the US dollar.

World fuel prices rose in June due to the Israel-Iran conflict, while the Peso weakened to its lowest level since March 2025. Since around 58% of PSA costs and 99% of IPP charges are dollar-denominated, this currency movement significantly impacted power costs.

Tempering the increase was a PHP 0.1703 per kWh drop in charges from the Wholesale Electricity Spot Market (WESM), as average electricity demand in the Luzon grid fell by over 770 MW in June, thus helping offset outages.

Transmission charges also rose by PHP 0.0734 per kWh due to higher reserve market costs, while other charges, including taxes, added PHP 0.0742 per kWh.

Pass-through charges such as generation and transmission costs are paid by Meralco to suppliers and grid operators, and government-mandated fees are remitted directly to the government. Meralco emphasized that its distribution charge remains unchanged since the PHP 0.0360 per kWh reduction in August 2022. Customers also continue to benefit from a PHP 0.2024 per kWh reduction through a distribution-related true-up adjustment.

Meralco also urged customers to observe electrical safety as flooding becomes more common during the rainy season. The company advised turning off the main power switch during floods, keeping electrical components dry, and having soaked appliances inspected by professionals.

Customers may report issues through the My Meralco app, social media channels, SMS hotlines, or by calling 16211.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.