The Manila Electric Company (Meralco) has announced an important decrease in power rates for May, with residential customers expected to see a reduction of Php 0.7499 per kilowatt-hour (kWh) in their electricity bills. The company estimates that the overall rate for a typical household has dropped from Php 13.0127/kWh in April to Php 12.2628/kWh this month.
“For residential customers consuming 200 kWh, they will see a decrease of around Php 150 in their total electricity bill this month. The rate reduction is due to lower generation and transmission charges,” said Joe R. Zaldarriaga, Meralco Vice President and Head of Corporate Communications.
The company attributed the drop in generation charges—now at Php 7.4651/kWh, down by Php 0.3144/kWh—to reduced costs from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs). WESM charges fell by Php 1.1424/kWh due to an enhanced supply situation in the Luzon Grid, where a 1,372 MW rise in peak demand was offset by a 1,475 MW decrease in average capacity on outage.
Meanwhile, charges from IPPs declined by Php 0.9555/kWh, as a result of higher average IPP dispatch and the boost of the Philippine peso—affecting approximately 97% of IPP costs, which are dollar-denominated. PSA charges rose due to lower dispatch, but this increase was tempered by the peso’s appreciation, which mitigated further cost hikes, especially for the 56% of PSA costs that are dollar-denominated.
In terms of energy sourcing, WESM, IPPs, and PSAs accounted for 26%, 33%, and 41% respectively of Meralco’s total energy requirements for the period.
Meralco also cited a Php 0.2970/kWh decrease in transmission charges for residential customers. This was attributed to lower ancillary service charges and the exclusion of Energy Regulatory Commission-approved adjustments related to previous Reserve Market transactions. Other charges, including taxes, saw a net decrease of Php 0.1385/kWh.
The company clarified that it merely collects pass-through charges for generation, transmission, and government-mandated fees, and has not increased its own distribution charge since August 2022. “Meralco’s distribution charge… has not moved since the Php 0.0360 per kWh reduction for a typical residential customer beginning August 2022,” the statement noted.
Customers continue to benefit from an ongoing distribution-related true-up adjustment of Php 0.2024/kWh.
Zaldarriaga also reported that power service during the May 12 midterm elections was “generally stable” across over 3,000 polling and canvassing centers. “Overall, the isolated and minor electricity service concerns were immediately resolved by our crews and did not cause any major delay in the voting process within our franchise area,” he said.
“Meralco will remain on full alert and on standby 24/7 to respond to possible concerns until the winners of the midterm elections have been proclaimed,” he added.
As the dry season continues, Meralco reminds customers to attempt energy-saving habits. Tips range from regular cleaning of air conditioning units and fan blades, bulk ironing, proper refrigerator use, to switching to LED bulbs. Tools like the Meralco Appliance Calculator are recommended also as they help customers manage their energy consumption more effectively.
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