MANILA, PHILIPPINES, 11 JUNE 2026– Following a rate reduction last month, the Manila Electric Company (Meralco) announced today an upward adjustment of P0.1488 per kWh in the June electricity rate, bringing the overall rate for a typical household to P14.4833 per kWh this month from P14.3345 per kWh in May.
For residential customers consuming 200 kWh, this adjustment translates to an increase of P30 in the total electricity bill.
Higher WESM and fuel prices, Peso depreciation push up generation charge
Driving the overall rate increase this June is the generation charge which went up by P0.2762 per kWh to P9.0704 from P8.7942 per kWh last month.
Wholesale electricity spot market (WESM) prices went up to P7.0281 per kWh due to tight supply conditions in the Luzon grid. The grid was placed on Red Alert for three consecutive days from May 13 to 15, as demand for electricity exceeded 2024’s record level — which was affected at the time by El Niño — and generation capacity became constrained following a couple of transmission line trippings. As a result, the secondary price cap was imposed 3.89% of the time, indicating persistently high spot market prices during the period.
This was offset by lower line rental and other charges following the lifting of the suspension of WESM operations on May 1.
It may be recalled, however, that Meralco’s customers were largely shielded from the increases in line rental charges as a substantial portion of these were borne by Meralco’s suppliers under the recent regulator-approved Power Supply Agreements (PSAs). For the pre-EPIRA power supply contracts with Sta. Rita and San Lorenzo gas plants, line rental charges are passed through in full to consumers.
Excluding the line rental adjustments, PSA charges went up by a slight P0.0941 per kWh, mainly due to the continued Peso depreciation that affected 54% of PSA costs and higher world market prices for coal and liquefied natural gas (LNG).
Meanwhile, charges from the Sta. Rita and San Lorenzo gas plants of First Gas/Prime CoreGen decreased by P0.1569 per kWh due to improved average dispatch. This offset the impact of higher fuel costs due to increased usage of LNG and Peso depreciation, which affected 99% of First Gas/Prime CoreGen’s charges.
PSAs, First Gas/Prime CoreGen, and WESM accounted for 69%, 21%, 10% respectively, of Meralco’s total energy requirement for the period.
Lower transmission, other charges
Tempering the overall rate increase this month is the transmission charge, which went down by P0.1525 per kWh.
Taxes and other charges meanwhile had a net increase of P0.0251 per kWh.
Customers also continue to benefit from Meralco’s ongoing refund equivalent to P0.4278 per kWh for residential customers.
Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively; while taxes, universal charges, and Feed-in Tariff Allowance are all remitted to the government.
Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022.
Customers reminded to be mindful of consumption
Meralco advised that significantly higher consumption of customers in May, which was triggered by extreme heat, will have an impact on the bills that they will receive this June.
“While there is an increase in electricity rates this month, elevated consumption patterns observed in May is also a major factor that could drive higher power bills of customers,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said.
Meralco urged customers to continue managing and monitoring their consumption. Customers can check the historical bill consumption chart in their bills or utilize the Meralco Appliance Calculator, which provides detailed information on the energy consumption of common appliances and gadgets.
“In addition, we urge customers to learn how to read their electric meters so they can gain better visibility into their actual consumption, monitor their energy use, and adopt habits that help manage electricity costs more effectively,” Zaldarriaga said.
Meralco further encouraged its customers to continue practicing energy efficiency. Among the practical tips customers can practice are regular cleaning of air conditioner filters and electric fan blades, ironing clothes in bulk, refraining from overfilling refrigerators, and using LED bulbs for cost-saving lighting.
As part of its consumer protection efforts, Meralco also reminded customers to refrain from posting electricity bills on social media, as these contain sensitive personal information that could expose them to cybersecurity risks.
“For concerns on electricity bills, we encourage our customers to get in touch with Meralco through our various customer touch points for assistance,” Zaldarriaga said.
Customers can report their concerns through the My Meralco app or through Meralco’s official social media accounts on Facebook (www.facebook.com/meralco) and X formerly Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211.
