The Manila Electric Company (Meralco) has announced an increase in electricity rates this March, citing higher generation and transmission charges that will push monthly bills upward for consumers.
The adjustment of ₱0.64 per kilowatt-hour (kWh) brings the overall electricity rate to ₱13.8161/kWh.
Estimated Impact on Monthly Bills:
- 200 kWh consumption → ₱129 increase
- 300 kWh consumption → ₱193 increase
- 400 kWh consumption → ₱257 increase
- 500 kWh consumption → ₱321 increase
Drivers Behind the Increase
Meralco explained that the hike was mainly driven by a sharp rise in ancillary service charges from the National Grid Corporation of the Philippines (NGCP) Reserve Market, which surged by about 70 percent.
Higher generation costs under several power purchase agreements also contributed, despite improved supply conditions in the Luzon grid.
The adjustment comes as global energy markets face volatility linked to Middle East tensions, while local demand typically spikes during the summer season due to heavier use of cooling appliances.
Meralco Urges Energy Efficiency
Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga encouraged consumers to adopt energy-saving practices to help manage costs.
“We are entering a period when demand for electricity traditionally peaks, and external factors are adding pressure to energy costs. By embracing energy efficiency, consumers can have better control on their electricity bills and at the same time, contribute to mitigating the impact of external factors on electricity costs,” Zaldarriaga said.
Meralco noted that its distribution charge has remained unchanged since August 2022, underscoring that the latest increase stems from external supply and transmission factors.