Meralco assures the public that it is prepared for the expected increase in electricity demand this dry season. The company also guarantees a prompt response in case of any power-related incidents during the upcoming #Halalan2025 elections. #SerbisyongMeralco
The Manila Electric Company (Meralco) announced on Thursday a power rate hike of P0.7226 per kilowatt-hour (kWh) for April, raising the overall electricity rate to P13.0127 per kWh from P12.2901 per kWh in March. For typical households consuming 200 kWh, this translates to a P145 increase in their total bill.
The main driver of the increase was a P0.7278 per kWh rise in the generation charge, fueled by surging costs from the Wholesale Electricity Spot Market (WESM). WESM charges soared by P3.4205 per kWh, attributed to tight supply in the Luzon grid during March.
Average and peak demand rose by 816 MW and 1,123 MW, respectively, while average capacity outages jumped by 979 MW. The Luzon grid was placed on Yellow Alert on March 5, with secondary price caps triggered 6.39% of the time.
Costs from Power Supply Agreements (PSAs) also rose by P0.2811 per kWh following the expiration of a 400 MW PSA with Limay Power Inc. on February 25.
These increases were partially offset by a P0.4738 per kWh reduction in Independent Power Producers (IPP) charges, aided by a stronger peso. About 97% of IPP costs are dollar-denominated.
For the period, Meralco sourced 44% of its supply from PSAs, 33% from IPPs, and 23% from WESM.
Transmission and other charges
Transmission charges for residential users increased by P0.0809 per kWh, primarily due to higher ancillary service charges from the National Grid Corporation of the Philippines (NGCP). This includes the final installment for reserve market transactions from February and March 2024, as ordered by the Energy Regulatory Commission (ERC).
Other charges—including taxes and regulatory fees—saw a net increase of P0.1163 per kWh.
Meralco clarified that generation and transmission charges are pass-through costs paid to power suppliers and grid operators. Taxes, universal charges, and feed-in tariff allowances are remitted to the government. Meralco’s distribution charge remains unchanged since its P0.0360 per kWh reduction in August 2022.
Distribution refund helps offset hike
Partially easing the rate increase is the start of a distribution rate true-up refund of P0.2024 per kWh, which began this April.
The ERC provisionally approved a P19.9 billion refund to cover the difference between Meralco’s actual weighted average tariff and approved rates from July 2022 to December 2024. The refund will be implemented over 36 months or until fully refunded.
Power contingency plans in place for midterm elections
As the country prepares for the 2025 midterm elections, Meralco assured the public of uninterrupted electricity service.
“Our franchise area has historically remained stable during elections,” said Joe R. Zaldarriaga, Meralco Vice President and Head of Corporate Communications. “Still, we have prepared contingency plans and completed inspections of over 3,000 polling and canvassing centers.”
Meralco will deploy crews, generator sets, and floodlights to critical locations, while its call center team is fully briefed to manage reports of outages or disruptions.
Energy-saving tips for households
|With electricity consumption rising by 20% to 33% during the dry season, Meralco urged customers to adopt energy efficiency measures, including:
- Cleaning air conditioner filters regularly
- Ironing clothes in bulk
- Avoiding overstuffing refrigerators
- Using LED lighting
Meralco also promoted its Appliance Calculator tool, which helps consumers estimate the energy usage of appliances and manage their monthly consumption.
Consumers may report concerns via the My Meralco app, Facebook (facebook.com/meralco), X (@meralco), or contact Meralco through 0920-9716211, 0917-5516211, or the Meralco Hotline: 16211 / 8631-1111.