Manila Electric Company (MERALCO) announced a PHP0.2331 per kilowatt-hour (kWh) increase in electricity rates for October 2025, bringing the overall rate to PHP 13.3182 per kWh from PHP13.0851 per kWh last month.

For a typical household consuming 200 kWh, the adjustment roughly translates to an increase of around PHP47 in the monthly bill.

According to Meralco, the rise was mainly driven by a higher generation charge, which climbed by PHP 0.1903 per kWh due to increased costs from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs). The utility said the peso’s depreciation against the US dollar also affected the cost of fuel and power purchases denominated in foreign currency.

The upward adjustment also reflected the Energy Regulatory Commission’s (ERC) approval of the interim extension of Meralco’s power purchase agreement (PPA) with the First Gas–Sta. Rita plant, which is a key supplier of baseload power.

Despite these increases, lower prices in the Wholesale Electricity Spot Market (WESM) provided partial relief, dropping by PHP  2.0688 per kWh following a reduction in Luzon’s peak demand by about 1,000 megawatts. For October, PSAs supplied 74% of Meralco’s total energy requirements, while IPPs and WESM accounted for 21% and 5%, respectively.

Other components of the bill, including transmission, taxes, and other charges, rose by PHP 0.0428 per kWh. However, Meralco emphasized that its distribution charge has remained unchanged since August 2022, and customers continue to benefit from a PHP 0.2024 per kWh reduction through a distribution-related true-up adjustment.

Amid recent earthquakes across the country, Meralco reiterated its commitment to public safety through ongoing grid hardening and electrical safety initiatives. The company said it continues to replace wooden poles, relocate facilities from danger zones, and upgrade lightning protection systems to ensure service reliability during disasters.

Do you think current electricity rate adjustments reflect the true cost of ensuring a stable and reliable power supply?

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