The Manila Electric Company (Meralco) announced a modest increase in electricity rates for March as higher transmission and generation costs were reflected in the latest billing cycle, underscoring the continued importance of maintaining a reliable and stable power supply for millions of consumers.
Meralco said electricity rates rose by P0.6427 per kilowatt-hour (kWh), bringing the overall rate for a typical household to P13.8161 per kWh from P13.1734 per kWh in February.
For residential customers consuming an average of 200 kWh per month, the adjustment translates to an increase of about P129 in their electricity bill.
The adjustment was largely driven by higher pass-through costs, particularly in transmission and generation charges, which are remitted directly to power suppliers and grid operators.
Transmission charges for residential customers increased by P0.2880 per kWh, mainly due to a significant rise in ancillary service costs charged by the National Grid Corporation of the Philippines (NGCP). These ancillary services are used to stabilize the grid and ensure sufficient reserve capacity, especially during periods of fluctuating demand and supply.
Data showed that charges from the Reserve Market accounted for nearly half of the total transmission costs for the month, reflecting increased demand for grid support services to maintain system reliability.
Meanwhile, generation charges also rose during the period as power supply costs increased in the wholesale market and from power suppliers. These costs are also pass-through charges that Meralco collects on behalf of power producers.
Despite the upward adjustment, Meralco emphasized that it continues to work closely with regulators, power suppliers, and grid operators to secure stable energy supply for its customers while managing fluctuations in global fuel prices and market conditions.
The company reiterated its commitment to transparency in electricity pricing and to ensuring that the power delivered to homes and businesses remains reliable as demand continues to grow across its franchise area.
As energy markets remain sensitive to regional developments and supply dynamics, Meralco said it continues to monitor market conditions closely while supporting long-term initiatives aimed at strengthening the country’s energy security and improving grid resilience.