Meralco customers are getting a break on their August electricity bills even as several power-related costs moved higher, with a massive ₱9.5-billion refund helping offset increases in transmission, ancillary services, taxes and fuel expenses.
The Manila Electric Company announced that the overall rate for a typical residential customer declined by ₱0.0428 per kilowatt-hour, bringing the August rate down to ₱14.7833 per kWh from ₱14.8261 per kWh in July.
For a household consuming 200 kWh, the adjustment means roughly ₱9 in savings on the monthly bill.
“For residential customers of Meralco who are consuming 200 kWh, this adjustment translates to a reduction of around ₱9 in the total electricity bill,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said.
The drop is particularly significant because it comes despite increases in several pass-through charges that are outside Meralco’s distribution charge.
Refund keeps August bills in check
Driving the rate reduction is the ERC-approved ₱9.5-billion refund, equivalent to ₱0.5861 per kWh for residential customers, which Meralco will implement over six months beginning this August.
The refund represents the difference between Meralco’s Actual Weighted Average Tariff and its approved distribution tariff covering January to December 2025.
Customers will see the adjustment reflected in their bills as “AWAT Refund/(Collect) 2.”
This comes on top of another ongoing refund equivalent to ₱0.4278 per kWh for residential customers.
Zaldarriaga said Meralco filed the refund application in accordance with regulatory rules and committed to implementing it transparently.
“We hope that this will help provide relief to our customers and assure them that this will be implemented in a transparent manner,” he said.
Meralco also pointed out that its actual distribution charge for a typical residential customer has not increased since August 2022.
Without refund, customers would have faced higher charges
The August reduction would have been larger if not for a sharp rise in other components of the bill.
Charges from the National Grid Corporation of the Philippines climbed by ₱0.3024 per kWh, largely because of higher ancillary service costs from the Reserve Market.
Reserve Market costs accounted for about 60 percent of NGCP charges for the month.
Taxes and other charges also rose by a net ₱0.2113 per kWh, including the ERC-approved adjustment in the Feed-In Tariff Allowance and higher taxes associated with the use of alternative fuels by First Gas/Prime CoreGen.
The plants had to use liquefied natural gas and liquid condensate during the unavailability of Malampaya natural gas.
Unlike Malampaya gas, which is VAT-exempt, the alternative fuels are subject to 12-percent value-added tax.
The ERC also approved the recovery of ₱8.7 billion in pass-through under-recoveries that Meralco had already advanced to suppliers, NGCP and the government from 2011 to 2022.
The corresponding adjustment averages around ₱0.08 per kWh and is expected to be collected over about 36 months.
Spot market, supply deals help contain generation costs
The generation charge moved up by only ₱0.0296 per kWh, despite higher costs from First Gas/Prime CoreGen.
First Gas/Prime CoreGen charges increased by ₱0.0845 per kWh as the Sta. Rita and San Lorenzo plants relied on more expensive LNG during the maintenance shutdown of the Malampaya gas facility.
Higher international oil prices also pushed up Malampaya gas prices following quarterly repricing.
But the increase was substantially cushioned by lower costs elsewhere.
Wholesale Electricity Spot Market charges dropped by ₱0.5452 per kWh following lower demand in the Luzon grid, while charges from Meralco’s Power Supply Agreements declined by ₱0.1079 per kWh, largely due to lower LNG prices.
PSAs supplied 74 percent of Meralco’s total energy requirement during the billing period, while First Gas/Prime CoreGen accounted for 22 percent and WESM for 4 percent.
Collection of the ₱0.0371-per-kWh Green Energy Auction Allowance also remains suspended this month under an ERC directive.
Meralco stressed that generation, transmission and ancillary service charges are passed on to power suppliers and NGCP, while taxes and other government-mandated charges are remitted to the government.
Meralco on 24/7 alert as habagat pounds service areas
Even as customers receive lower bills, Meralco said its crews remain on round-the-clock duty amid continued monsoon rains affecting parts of its franchise area.
The company said teams are working continuously to restore electricity to customers hit by service interruptions.
“As we closely monitor the situation, we assure our customers that we are working round-the-clock to restore service to remaining affected customers as soon as possible,” Zaldarriaga said.
Meralco also urged the public to stay away from downed power lines, damaged electrical facilities and equipment submerged in floodwaters.
Customers in flooded areas are advised to switch off the main electrical power supply or circuit breaker, keep electrical devices dry and have drenched outlets or appliances checked by a licensed electrician before use.
With the refund taking effect this month and emergency crews staying on full alert, Meralco said it remains focused on both easing the burden on customers and keeping electricity service safe and reliable during severe weather.