Following last month’s reduction in electricity rates, the Manila Electric Company (Meralco) announced a minimal upward adjustment of P0.2331 per kWh for October, bringing the overall rate for a typical household to P13.3182 per kWh from P13.0851 per kWh in September.
For residential customers consuming 200 kWh, the adjustment translates to an increase of around P47 in their total bill.
Higher generation charges from power suppliers
The adjustment this month was primarily driven by higher generation charges from power producers. After a P0.2603 per kWh reduction in September, the October generation charge increased by P0.1903 per kWh.
Rates from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) went up by P0.3622 and P0.3567 per kWh, respectively, due mainly to the depreciation of the Philippine Peso against the US Dollar. This affected 99% of IPP costs and 48% of PSA costs, as these supply contracts are dollar-denominated.
The increase also reflected the interim extension of Meralco’s power purchase agreement with the First Gas-Sta. Rita plant, approved by the Energy Regulatory Commission (ERC), ensuring continued supply stability.
However, the overall increase was moderated by lower charges from the Wholesale Electricity Spot Market (WESM), which dropped by P2.0688 per kWh due to a 1,000 MW decrease in Luzon’s peak demand.
For the period, IPPs, PSAs, and WESM accounted for 21%, 74%, and 5%, respectively, of Meralco’s total energy requirements.
Other components and continuing rate stability
Transmission, taxes, and other charges also posted a combined increase of P0.0428 per kWh.
Meralco emphasized that generation and transmission charges are pass-through costs directly remitted to power suppliers and the grid operator. Similarly, taxes, universal charges, and the Feed-in Tariff Allowance go entirely to the government.
The company reiterated that its distribution charge—the portion that goes to Meralco—has remained unchanged since it implemented a P0.0360 per kWh reduction in August 2022. Customers likewise continue to benefit from the ongoing distribution-related true-up adjustment, equivalent to a P0.2024 per kWh reduction.
Commitment to safety and reliability
In light of recent earthquakes, Meralco reaffirmed its commitment to maintaining a resilient and safe power distribution network. The company continues to implement proactive measures such as replacing wooden poles with sturdier concrete or steel ones, relocating facilities away from high-risk areas, and conducting regular tree trimming and wire clearing.
Meralco also installs smart devices to quickly detect and isolate service issues, enhancing its response time during emergencies. When necessary, the company is prepared to temporarily de-energize lines to ensure public safety.
Customers are reminded to practice electrical safety at home—unplugging unused appliances, checking cords for damage, and knowing the location of their main switch for emergencies. After an earthquake, and only when safe, households should turn off the main switch, unplug devices, and avoid downed power lines.
Electrical hazards and service concerns may be reported through the MyMeralco App, Meralco’s official Facebook page (www.facebook.com/meralco), X (formerly Twitter) account (@meralco), via text at 0920-9716211 or 0917-5516211, or through the Meralco Hotline 16211.