Photo credit: Meralco

Manila, Philippines — June 11, 2025

For the second consecutive month, the Manila Electric Company (Meralco) has reduced its electricity rates, bringing welcome relief to consumers. Meralco announced a decrease of P0.1076 per kilowatt-hour (kWh) for June, lowering the overall rate for a typical household to P12.1552 per kWh, down from P12.2628 in May.

Joe R. Zaldarriaga, Meralco Vice President and Head of Corporate Communications, confirmed the development, noting that households consuming 200 kWh can expect a reduction of about P22 in their June electricity bills. He attributed the continued decline to a lower generation charge.

Key Driver: Lower Generation Charge

This month’s overall rate drop was primarily driven by a P0.1099 per kWh decrease in the generation charge, now at P7.3552 per kWh. The decline stems from lower costs across various sources of electricity, including 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. This was attributed to lower fuel prices and more consistent electricity dispatch. Meanwhile, WESM charges decreased by P0.6342 per kWh, reflecting improved supply conditions on the Luzon grid.

Despite an increase in average demand of around 527 MW, the average capacity on outage dropped by 533 MW, balancing the supply-demand dynamics and contributing to the favorable market pricing. For the period, PSAs provided 48% of Meralco’s energy needs, IPPs contributed 33%, and WESM covered 18%.
Transmission, Taxes, and Other Charges

While the generation charge decreased, the transmission charge saw a slight increase of P0.0214 per kWh due to higher ancillary service costs from the National Grid Corporation of the Philippines (NGCP). However, this was more than offset by the generation cost reduction.

Other components, including taxes, saw a net reduction of P0.0191 per kWh. It’s important to note that these charges are pass-through costs—generation and transmission fees are paid to suppliers and the grid operator, while taxes and other regulatory charges go directly to the government.

Meralco’s distribution charge remains unchanged since August 2022, when it was reduced by P0.0360 per kWh. Consumers are also benefiting from an ongoing true-up adjustment related to distribution costs, which continues to provide a P0.2024 per kWh reduction for residential users.

Assistance Programs for Qualified Customers

Meralco once again encouraged eligible customers to apply for financial relief programs, including the lifeline rate and senior citizen discount.

The lifeline rate is available to households under the Pantawid Pamilyang Pilipino Program (4Ps) or other marginalized groups with certification from their local Social Welfare and Development Office (SWDO). Only customers with approved applications can avail of this discount.

Senior citizens aged 60 and above, whose monthly consumption does not exceed 100 kWh, may also apply for a 5% discount on certain portions of their electricity bill. Applications can be processed at any Meralco Business Center.

Safety Reminder as Rainy Season Begins

As the country transitions into the rainy season, Meralco issued a reminder on electrical safety. The company emphasized the importance of turning off the main power switch during flooding, handling appliances only with dry hands, and ensuring all electrical components are dry before use. Meralco also advised that any appliances or outlets exposed to water should be inspected by a licensed electrician before being turned back on.

These rate adjustments and reminders underscore Meralco’s ongoing efforts to balance affordability, reliability, and safety in its service to customers.