BUSINESS
Advocates Philippines
Lower Electricity Rates Bring Relief As Rainy Season Begins, Says Meralco
Contributed Photo
As the rainy season settles in, Meralco customers can expect some relief on their electricity bills this June. The Manila Electric Company announced another rate reduction of P0.1076 per kilowatt-hour (kWh), bringing the overall rate for a typical household down to P12.1552 per kWh from P12.2628 in May. This marks the second consecutive month of power rate decreases for the country’s largest distribution utility.
Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga explained that the continued drop in electricity rates is largely due to a lower generation charge. “A typical household consuming 200 kWh will see a decrease of around P22 in their total electricity bill for June,” he said.
The savings grow with higher consumption. Households using 300 kWh will save approximately P32, while those consuming 400 kWh and 500 kWh will see reductions of P43 and P54, respectively.
The main driver of the lower overall rate is the decline in generation charges, which fell by P0.1099 per kWh to P7.3552. The drop is attributed to lower costs from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM).
Charges from PSAs and IPPs went down by P0.3699 and P0.1034 per kWh, respectively, due to a combination of reduced fuel prices and improved average dispatch. WESM charges saw an even sharper decline of P0.6342 per kWh, thanks to a more stable power supply situation in Luzon last May, despite a slight increase in demand.
During this billing period, PSAs provided 48% of Meralco’s energy needs, IPPs accounted for 33%, and WESM supplied 18%.
While there was a slight increase in the transmission charge—up by P0.0214 per kWh due to higher ancillary service charges—this was more than offset by the lower generation charge. Other components, including taxes, showed a net decrease of P0.0191 per kWh.
Meralco emphasized that these pass-through charges—generation and transmission—go directly to power suppliers and the grid operator. Taxes and universal charges are remitted to the government. Meanwhile, Meralco’s own distribution charge has remained unchanged since its last reduction of P0.0360 per kWh in August 2022.
Customers also continue to benefit from an ongoing distribution-related true-up adjustment, which cuts P0.2024 per kWh from residential bills.
In addition to announcing the lower rates, Meralco is urging qualified customers to apply for available subsidy programs, including the lifeline rate and senior citizen discount. These programs offer financial relief to eligible households, especially those in marginalized communities and qualified senior citizens whose monthly consumption does not exceed 100 kWh.
Customers enrolled in the government’s Pantawid Pamilyang Pilipino Program (4Ps) or those certified by their local social welfare offices can qualify for the lifeline rate, while senior citizens may receive a 5% discount on specific portions of their bill.
As rains become more frequent, Meralco is also reminding the public to take precautions when it comes to electrical safety. In areas prone to flooding, customers are advised to switch off their main power supply, unplug appliances, and avoid handling electrical equipment with wet hands. Any appliances or wiring that may have been submerged should be inspected by a licensed electrician before use.
Zaldarriaga emphasized the importance of vigilance during this time, noting that simple safety measures can go a long way in preventing accidents.
With both a decrease in rates and ongoing safety efforts, Meralco aims to help households navigate the rainy season with a little more peace of mind—and lighter bills.
Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga explained that the continued drop in electricity rates is largely due to a lower generation charge. “A typical household consuming 200 kWh will see a decrease of around P22 in their total electricity bill for June,” he said.
The savings grow with higher consumption. Households using 300 kWh will save approximately P32, while those consuming 400 kWh and 500 kWh will see reductions of P43 and P54, respectively.
The main driver of the lower overall rate is the decline in generation charges, which fell by P0.1099 per kWh to P7.3552. The drop is attributed to lower costs from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM).
Charges from PSAs and IPPs went down by P0.3699 and P0.1034 per kWh, respectively, due to a combination of reduced fuel prices and improved average dispatch. WESM charges saw an even sharper decline of P0.6342 per kWh, thanks to a more stable power supply situation in Luzon last May, despite a slight increase in demand.
During this billing period, PSAs provided 48% of Meralco’s energy needs, IPPs accounted for 33%, and WESM supplied 18%.
While there was a slight increase in the transmission charge—up by P0.0214 per kWh due to higher ancillary service charges—this was more than offset by the lower generation charge. Other components, including taxes, showed a net decrease of P0.0191 per kWh.
Meralco emphasized that these pass-through charges—generation and transmission—go directly to power suppliers and the grid operator. Taxes and universal charges are remitted to the government. Meanwhile, Meralco’s own distribution charge has remained unchanged since its last reduction of P0.0360 per kWh in August 2022.
Customers also continue to benefit from an ongoing distribution-related true-up adjustment, which cuts P0.2024 per kWh from residential bills.
In addition to announcing the lower rates, Meralco is urging qualified customers to apply for available subsidy programs, including the lifeline rate and senior citizen discount. These programs offer financial relief to eligible households, especially those in marginalized communities and qualified senior citizens whose monthly consumption does not exceed 100 kWh.
Customers enrolled in the government’s Pantawid Pamilyang Pilipino Program (4Ps) or those certified by their local social welfare offices can qualify for the lifeline rate, while senior citizens may receive a 5% discount on specific portions of their bill.
As rains become more frequent, Meralco is also reminding the public to take precautions when it comes to electrical safety. In areas prone to flooding, customers are advised to switch off their main power supply, unplug appliances, and avoid handling electrical equipment with wet hands. Any appliances or wiring that may have been submerged should be inspected by a licensed electrician before use.
Zaldarriaga emphasized the importance of vigilance during this time, noting that simple safety measures can go a long way in preventing accidents.
With both a decrease in rates and ongoing safety efforts, Meralco aims to help households navigate the rainy season with a little more peace of mind—and lighter bills.
Jun 19, 2025
We are dedicated storytellers with a passion for bringing your brand to life. Our services range from news and media features to brand promotion and collaborations.
Interested? Visit our
Contact Us page for more information. To learn more about what we offer, check out our latest article on services and opportunities.