Customers of Manila Electric Company are beginning 2026 with welcome relief on their electricity bills, as the country’s largest distribution utility announced another reduction in power rates this January—the second straight month of lower charges.
Meralco said the overall rate went down to P12.9508 per kilowatt-hour from P13.1145 per kWh in December, reflecting a decrease of P0.1637 per kWh. For households consuming 200 kWh per month, this translates to savings of around P33. Customers using 300 kWh, 400 kWh, and 500 kWh can expect bill reductions of approximately P49, P65, and P82, respectively.
“This is the second consecutive month that overall electricity rates have gone down. We hope this provides some relief to our customers as we begin the new year,” said Joe R. Zaldarriaga, Meralco vice president and head of corporate communications.
The January rate cut was largely driven by lower transmission charges, with the residential transmission rate declining by P0.10 per kWh to P1.0368 per kWh. This was mainly due to reduced ancillary service charges incurred by the National Grid Corporation of the Philippines under its procurement agreements and the Reserve Market.
Generation charges also contributed to the overall decrease, dropping by P0.0171 per kWh to P7.7471 per kWh. Meralco attributed this to lower charges from the Wholesale Electricity Spot Market and Power Supply Agreements. WESM prices fell sharply by P1.1898 per kWh amid an improved supply situation in the Luzon Grid, following reductions in both average peak demand and capacity on outage.
Charges from Power Supply Agreements likewise declined by P0.0516 per kWh as the San Buenaventura Power Ltd. Co. plant resumed operations after a scheduled outage last month. These decreases helped offset higher charges from Independent Power Producers, which rose by P1.4879 per kWh due to increased fixed fees at the Sta. Rita plant after the Energy Regulatory Commission confirmed the computation method of First Gas Power Corp. under the interim extension of its contract with Meralco. The peso’s depreciation against the US dollar also pushed IPP costs higher, as nearly all of these expenses are dollar-denominated.
For the billing period, WESM, PSAs, and IPPs accounted for 7 percent, 71 percent, and 22 percent, respectively, of Meralco’s total energy requirements. A further P0.0837 per kWh net reduction in taxes and other charges also helped pull down overall rates this January.
Meralco Senior Vice President and Head of Networks Froilan J. Savet warns the public on the dangers of theft of electrical facilities including power cables.
These downward movements were enough to offset the implementation of the Green Energy Auction Allowance, which took effect this month following an ERC directive. The approved GEA-All amounts to P0.0371 per kWh and applies to all on-grid end-users to cover the differential needed to fully compensate eligible renewable energy plants, with collections remitted to the National Transmission Corporation.
Meralco emphasized that its distribution charge has remained unchanged since August 2022, when it implemented a P0.0360 per kWh reduction for typical residential customers.
Separately, the company renewed its warning to the public against the theft of electrical facilities following a recent incident in Quezon City that disrupted power supply to nearly 8,000 customers. The attempted cable theft left a 37-year-old suspect in critical condition after sustaining severe flashover burns, while electricity service was restored within four hours due to the swift response of Meralco crews.
“This incident underscores the grave dangers of stealing power cables and other electrical facilities. Beyond service interruptions, these acts pose serious, life-threatening risks due to the high voltage involved,” said Froilan J. Savet, Meralco senior vice president and head of networks, urging the public to report any suspicious activities involving power facilities.
Meralco said it recorded 285 incidents of electrical facility theft in 2025 alone, including four cases that resulted in physical injuries. The company reiterated that stealing power cables, meters, and similar equipment is a violation of Republic Act No. 7832, or the Anti-Electricity Pilferage Act, which carries penalties of imprisonment and fines.
Customers were again encouraged to report outages, suspicious activities, and other electricity service concerns through the MyMeralco app, Meralco’s official social media channels, via text at 0920-9716211 or 0917-5516211, or through the Meralco Hotline at 16211.