The Manila Electric Company (Meralco) announced a modest increase of P0.1520 per kilowatt-hour (kWh) in its November electricity rate, bringing the overall rate to P13.4702 per kWh from P13.3182 per kWh in October. For a typical household consuming 200 kWh, this translates to an increase of around P30 in the monthly bill.
Meralco explained that the slight upward adjustment was mainly driven by higher transmission charges and the new Feed-in Tariff Allowance (FIT-All) rate approved by the Energy Regulatory Commission (ERC).
Transmission charges for residential customers rose by P0.1468 per kWh this month due to increased ancillary service costs from the Reserve Market incurred by the National Grid Corporation of the Philippines (NGCP). Meanwhile, the ERC’s directive to implement a higher FIT-All rate of P0.2073 per kWh—up from P0.1189—added P0.0884 per kWh to the overall bill. The FIT-All is a renewable energy support mechanism that ensures payment to qualified renewable energy developers producing clean power.
These two factors largely account for the modest rise in November’s electricity rate.
Tempering the increase, however, was a reduction in generation charges. The generation rate went down by P0.1008 per kWh to P7.9000 from P8.0008 last month, following lower costs from Power Supply Agreements (PSAs) and the Wholesale Electricity Spot Market (WESM). PSA rates dropped by P0.2985 per kWh as fuel costs declined, offsetting the effects of the peso’s depreciation. WESM rates also decreased by P0.6273 per kWh due to downward adjustments in market settlements.
Independent Power Producer (IPP) charges, however, increased by P0.2481 per kWh, largely because 99 percent of IPP costs are dollar-denominated and were affected by the weaker peso. For this month, PSAs, IPPs, and WESM accounted for 77 percent, 20 percent, and 3 percent, respectively, of Meralco’s total power supply.
Other charges, including system loss, subsidies, taxes, and universal charges (UC), registered a slight net increase of P0.0176 per kWh, following the ERC’s lifting of the suspension on the collection of the UC-Environmental Charge.
Meralco clarified that generation and transmission costs are pass-through charges paid directly to power suppliers and the grid operator, while taxes, FIT-All, and UC are remitted to the government. The company’s distribution charge—covering Meralco’s operational costs—has remained unchanged since it was reduced by P0.0360 per kWh in August 2022.
For power interruptions and other service concerns, customers may contact Meralco through its official Facebook page (www.facebook.com/meralco), X account (@meralco), text 0920-9716211 or 0917-5516211, or call the Meralco hotline at 16211.
