Electricity consumers across the Philippines are seeing higher power rates this month as rising fuel costs, tighter power supply, and global energy market pressures continue to push up generation costs.
Within its franchise area, the Manila Electric Company (Meralco) announced an increase of P0.3428 per kilowatt-hour (kWh) in its July residential electricity rate, bringing the overall rate for a typical household to P14.8261 per kWh, from P14.4833 per kWh in June.
The adjustment means an additional P69 in the monthly electricity bill of a household consuming 200 kWh.
The latest increase mirrors similar adjustments being implemented by electric cooperatives and distribution utilities in various parts of the country, particularly in the Visayas and Mindanao, where consumers are likewise experiencing higher electricity rates due to rising generation costs and fuel prices.
Generation charge remains the biggest driver
Meralco said the increase was primarily driven by the generation charge, which rose by P0.1800 per kWh to P9.2504 per kWh, largely reflecting higher fuel costs and developments in the global energy market.
The most significant increase came from First Gas/Prime CoreGen, whose charges rose by P0.3613 per kWh to P10.6489 per kWh after the scheduled one-month maintenance shutdown of the Malampaya natural gas facility beginning June 15. During the shutdown, the Sta. Rita and San Lorenzo power plants shifted to the more expensive liquefied natural gas (LNG), resulting in higher generation costs.
Charges from power supplied under post-EPIRA Power Supply Agreements (PSAs) also increased by P0.2678 per kWh to P8.8694 per kWh, reflecting continued volatility in global fuel prices amid the ongoing conflict in the Middle East.
Meanwhile, prices at the Wholesale Electricity Spot Market (WESM) climbed to P8.0337 per kWh after Luzon recorded a new peak demand of 14,534 megawatts on May 28, 2026. The tighter supply situation triggered more frequent implementation of the secondary price cap, further increasing spot market prices.
For the July billing period, PSAs supplied 72% of Meralco’s electricity requirements, while First Gas/Prime CoreGen accounted for 22%, and WESM contributed the remaining 6%.
Taxes and transmission charges also increased
Taxes added P0.0960 per kWh to customer bills, mainly because LNG is subject to the 12% value-added tax (VAT), unlike Malampaya gas, which is VAT-exempt.
Transmission and other pass-through charges likewise increased by P0.0668 per kWh.
Despite the higher overall electricity rate, Meralco emphasized that its distribution charge—the portion it earns for delivering electricity to customers—has remained unchanged since August 2022, when it implemented a P0.0360 per kWh reduction for residential consumers.
The company also noted that the Energy Regulatory Commission (ERC) has extended the suspension of collecting the P0.0371 per kWh Green Energy Auction Allowance (GEA-All) until August 2026, helping cushion the impact of higher electricity costs.
Meralco reiterated that generation and transmission charges are pass-through costs paid to power suppliers and the grid operator, while taxes, universal charges, and the Feed-in Tariff Allowance are remitted to the government.
Safety reminders amid rainy weather
With Typhoon Inday (international name: Bavi) expected to bring heavy rains over parts of Meralco’s franchise area, the company reminded customers to observe electrical safety.
Residents are advised to switch off the main circuit breaker if flooding occurs, avoid touching electrical equipment with wet hands, keep electrical wiring dry, and have flood-affected outlets and appliances inspected by a licensed electrician before use.
Customers are also encouraged to keep communication devices fully charged to ensure access to emergency information during severe weather.
More customers can now choose their electricity supplier
Meralco also welcomed the government’s continued push for customer choice in the electricity market following the ERC’s decision to lower the Retail Competition and Open Access (RCOA) contestability threshold to 100 kilowatts (kW) starting June 26, 2026.
The move enables more medium-sized businesses to select their preferred electricity supplier. Through the Retail Aggregation Program (RAP), smaller households and enterprises can also combine their electricity demand to collectively qualify for competitive supplier options.
For inquiries and service concerns, customers may contact Meralco through the My Meralco App, the company’s official Facebook and X accounts, text 0920-9716211 or 0917-5516211, or call the Meralco Hotline 16211.