Meralco customers are set to receive additional bill relief beginning November as the power distributor prepares to implement a P2.64-billion refund, alongside investments aimed at strengthening network reliability and improving service.
The forthcoming refund offers a positive development for consumers following an October rate adjustment driven by higher power generation costs. Lower charges from contracted suppliers, transmission and ancillary services, and taxes helped cushion this month’s increase.
The Energy Regulatory Commission (ERC) approved the latest refund at an average rate of P0.1020 per kilowatt-hour across all customer classes, with residential customers receiving a higher P0.1733 per kWh. It will run for six months starting with November 2026 billing, or until the amount is fully returned.
For a household consuming 200 kWh monthly, the residential refund translates to approximately P35 in monthly bill relief.
“We welcome the regulator’s prompt action on our latest refund application, which we hope will give immediate relief to consumers,” said Meralco Senior Vice President and Head of Regulatory Management Atty. Jose Ronald V. Valles.
The new refund covers the January-to-June 2026 lapsed regulatory period. It will supplement two refunds already being implemented, equivalent to a combined P1.0139 per kWh for residential customers, covering July 2022 to December 2025.
Lower supply costs help cushion October adjustment
Following two consecutive monthly rate reductions, Meralco’s overall October electricity rate rose by P0.3191 per kWh to P15.0615 from September’s P14.7424. For households consuming 200 kWh, this means an increase of around P64.
The adjustment was primarily driven by a P0.4973-per-kWh increase in the generation charge, reflecting higher liquefied natural gas costs, peso depreciation and tighter supply conditions in the Luzon grid during September.
Charges from First Gas/Prime CoreGen increased by P3.2206 per kWh, while Wholesale Electricity Spot Market charges rose by P3.5167 per kWh.
However, charges from power supply agreements—which provided 74 percent of Meralco’s electricity requirements—declined by P0.7567 per kWh. Lower fuel costs at South Premier Power Corp., which used Malampaya natural gas, helped temper the impact of peso depreciation.
Lower transmission and ancillary service charges provided further relief, reducing National Grid Corporation of the Philippines charges by a combined P0.1384 per kWh.
Taxes and other charges also registered a net decline of P0.0398 per kWh, despite an ERC-directed increase in the universal charge for missionary electrification. Tax reductions reflected the higher share of indigenous natural gas, which is exempt from value-added tax, and the removal of VAT on the system loss charge.
Generation, transmission and ancillary service charges are passed through to power suppliers and the grid operator. Taxes and other public policy charges are remitted to the government and relevant agencies.
Regulatory clarity supports better service
Meralco also welcomed the ERC’s announced approval of an average distribution rate of P1.48 per kWh for the regulatory period covering July 1, 2026 to June 30, 2030.
The company said the development addresses outstanding regulatory matters after more than 15 years without a rate reset and supports planning for network improvements. Meralco has yet to receive the formal decision.
“We believe that this will allow Meralco to move forward with greater clarity as we pursue investments and initiatives to modernize our distribution network and enhance service delivery,” Valles said.
Planned investments include advanced metering infrastructure, cybersecurity and network modernization projects intended to improve operational efficiency, strengthen reliability and deliver better service.
Meralco said its actual distribution charge had remained unchanged for years and declined to P1.35 per kWh effective 2016, despite increases in material costs, commodity prices and minimum wages.
Preparing for higher electricity demand
Meralco is also coordinating with the Department of Energy and other agencies to prepare for the potential effects of El Niño.
The company said it has contracted sufficient supply for its more than 8.3 million customers and continues regular maintenance, facility upgrades and distribution network improvements.
It is encouraging more businesses to join the government’s Interruptible Load Program, under which participating establishments use their own generators or temporarily shift operations during supply shortages. This frees up grid electricity for other customers, particularly households, and helps reduce the risk of interruptions.
Customers can also manage consumption by unplugging unused appliances, maximizing natural light and setting air conditioners to 25°C while keeping them properly maintained.
“With higher temperatures expected during the El Niño, we anticipate increase in electricity demand. We therefore call on our customers to be mindful of their consumption and to practice energy efficiency, which will also help in managing their electricity bills,” said Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga.
