As the dry season ramps up and midterm elections loom, customers are bracing for a sharper sting in their electricity bills. The Manila Electric Company (Meralco) announced today a PHP 0.7226 per kWh hike in April’s electricity rate, pushing the overall rate for a typical household to PHP 13.0127 per kWh from March’s PHP 12.2901. For a household consuming 200 kWh, this translates to an extra PHP 145 on their bill.
The spike is largely driven by a PHP 0.7278 per kWh jump in the generation charge, triggered by soaring costs in the Wholesale Electricity Spot Market (WESM).
“WESM charges went up by PHP 3.4205 per kWh due to the tighter supply conditions in the Luzon Grid during the March supply month,” Meralco said in a press release. With demand surging—average and peak loads rose by 816 MW and 1,123 MW, respectively—and 979 MW more capacity offline than usual, the Luzon grid hit a Yellow Alert on March 5. High spot market prices persisted, with the secondary price cap triggered 6.39% of the time.
Compounding the issue, Power Supply Agreement (PSA) charges climbed PHP 0.2811 per kWh after a 400 MW contract with Limay Power Inc. expired on February 25. A stronger peso softened the blow from Independent Power Producers (IPPs), cutting their charges by P0.4738 per kWh, but it wasn’t enough to offset the WESM and PSA increases.
Transmission charges also ticked up by P0.0809 per kWh, driven by higher ancillary service costs from the National Grid Corporation of the Philippines (NGCP). This includes the final installment of reserve market fees from February and March 2024, as mandated by the Energy Regulatory Commission (ERC). Taxes and other charges added another PHP 0.1163 per kWh to the mix.
A silver lining comes from a PHP 0.2024 per kWh distribution rate true-up adjustment, approved provisionally by the ERC on March 5, 2025. This refund, totaling PHP 19.9 billion, addresses overcharges from July 2022 to December 2024 and will be spread over 36 months.
With elections approaching, Meralco is on high alert. “Historically, Meralco’s franchise area has had no problems during the election period but nonetheless, we have prepared contingency plans in case of isolated power outages to ensure that our facilities are ready to respond to any emergency,” said Joe R. Zaldarriaga, Meralco’s Vice President and Head of Corporate Communications.
Over 3,000 polling and canvassing centers have been inspected, with generator sets and floodlights deployed as backups. The utility also tested its readiness during mock elections earlier this year.
As households crank up air conditioners—consumption typically rises 20% to 33% in the dry season—Meralco urges energy-saving habits like cleaning AC filters, bulk ironing, and using LED bulbs. The Meralco Appliance Calculator can help track usage, while concerns can be reported via the My Meralco app, social media, or hotlines at 16211 and 8631-1111.
The convergence of tight power supply, election preparations, and seasonal demand paints a challenging picture for consumers. Yet, the true-up refund offers a rare reprieve, raising questions about how regulators and utilities can better balance costs in a warming, power-hungry Philippines. How are these rate hikes affecting your household or business? What energy-saving tips are you using to cope? Share your thoughts below or join the conversation on social media!
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