The Philippines posted the highest average electricity rate in the Association of Southeast Asian Nations (ASEAN) in June 2026 at PHP 12.43 per kilowatt-hour (kWh), narrowly surpassing Singapore, according to the Department of Energy (DOE).

Singapore’s comparable electricity rate was about PHP 0.093 per kWh lower, placing the Philippines at the top of the regional comparison by roughly nine centavos. Energy officials stressed that the ranking applied only to June and could change once complete July data become available.

“We are the highest in Asia only for the month of June,” Energy Undersecretary Rowena Guevara said during a DOE virtual press conference on July 20.

Guevara attributed the elevated electricity rate to tight power supply and stronger demand during the summer months, which required the system to dispatch more expensive generating plants to prevent outages.

The Visayas was among the main pressure points, with 21 power plants reportedly experiencing forced outages. The regional grid also depended on electricity transferred from Luzon and Mindanao as it faced recurring yellow alerts beginning in May.

A yellow alert indicates that the power grid’s operating reserves have fallen below the required level, although electricity supply remains sufficient to meet demand.

In its domestic monitoring, the DOE separately reported a national average residential rate of PHP 12.24 per kWh in June. Meralco’s rate for households consuming 200 kWh reached PHP 14.48 per kWh, up by PHP 0.15 from the previous month.

The increase in Meralco’s rate was attributed to higher generation charges caused by elevated Wholesale Electricity Spot Market (WESM) prices, increased demand, grid alerts, and transmission constraints. Lower transmission charges and the utility’s ongoing refund mechanism partly offset the increase.

Among the on-grid distribution utilities cited by the DOE, Southern Leyte Electric Cooperative recorded the highest residential rate at PHP 16.57 per kWh after its generation charge increased by nearly PHP 4 per kWh.

The DOE said it is coordinating with the Energy Regulatory Commission (ERC) to ensure that electricity rates charged by distribution utilities and electric cooperatives reflect appropriate costs.

The department is also encouraging utilities to prioritize electricity from lower-cost generating facilities before dispatching more expensive plants.

Rising international oil prices could add further pressure to electricity costs, although oil-fired facilities account for only around 3% of the country’s power-generation mix. The DOE said higher petroleum prices could indirectly increase the cost of transporting coal and other fuels used by power plants.

The government is banking on new generating capacity, renewable energy projects, battery storage facilities, and improved plant availability to strengthen supply and reduce dependence on costlier generation.

Will additional capacity and fewer power plant outages be enough to bring Philippine electricity rates below those of its regional neighbors in the coming months?

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