Meralco customers will see lower electricity bills this month as the power distributor announced a PHP 0.3557 per kWh reduction in its December 2025 rate, thus bringing the overall charge for a typical household to PHP 13.1145 per kWh. The decrease directly translates to about a PHP 71 drop in the monthly bill for customers consuming 200 kWh.

During its monthly rates press briefing on December 9, the company said the downward adjustment was mainly driven by lower transmission and generation charges. Transmission costs fell by PHP 0.1462 per kWh due to reduced ancillary service rates following the implementation of the Reserve Market. Generation charges also declined by PHP 0.1358 per kWh, reflecting lower charges from Independent Power Producers (IPPs), improved plant dispatch, and the effect of peso appreciation on dollar-denominated components.

Meralco Vice President Joe R. Zaldarriaga explained how currency movements contributed to the adjustment. He noted that a stronger peso helps ease generation costs because IPP-related expenses are largely dollar-denominated. He added that the reference exchange rate used for billing is based on the last banking day of the month. For December, the rate was PHP 58.64 per USD, which reflects slight peso strengthening.

Meralco reported that IPP charges decreased by PHP 0.2127 per kWh, while power supply agreements posted a small increase of PHP 0.0706 per kWh due to plant maintenance activities. Wholesale Electricity Spot Market (WESM) charges, meanwhile, rose by PHP 0.8086 per kWh despite lower demand in November. The company said its supply mix for the period consisted of 73% from PSAs, 21% from IPPs, and 6% from WESM.

The company added that taxes and other charges also went down by PHP 0.0737 per kWh, while the distribution rate remains unchanged, having last been adjusted in August 2022. Looking ahead, Zaldarriaga said no significant rate movements are expected in early 2026.

Meralco also reiterated its safety reminders for the holiday season. They advise customers to unplug unused lights and appliances, avoid octopus connections, check older decorations for signs of damage, and keep flammable items away from electrical sources. The company said its crews remain on standby around the clock for service concerns.

How can consumers better manage electricity use during periods of lower rates to maximize savings throughout the year?

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