Meralco Raises Electricity Rates by 26 Centavos per kWh in March

MANILA, Philippines – Households in Meralco-serviced areas should prepare for higher electricity bills this March, as the power distributor raises rates by P0.2639 per kilowatt-hour (kWh).

This brings the overall residential rate to P12.2901 per kWh, up from P12.0262 per kWh in February. The increase translates to about P53 more in the monthly bill for customers consuming 200 kWh.

Why the Increase?

Meralco attributed the price hike to multiple factors:

• Absence of Last Month’s Adjustment: The one-time downward adjustment of P0.2264 per kWh implemented in February is no longer applied.
• Higher Transmission Charges: A P0.1294 per kWh increase due to higher ancillary service charges from the National Grid Corporation of the Philippines (NGCP).
• Feed-in Tariff Allowance (FIT-All) Hike: The FIT-All rate increased by P0.0351 per kWh, following an Energy Regulatory Commission (ERC) directive.
• Higher Taxes and Other Charges: These registered a net increase of P0.0416 per kWh.

Rate Hike Moderated by Lower Generation Costs

The generation charge decreased by P0.1686 per kWh, dropping to P7.0517 per kWh. This was due to:

• Cheaper energy from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs), with costs dropping by P1.0143 and P0.2934 per kWh, respectively, due to the peso’s appreciation against the US dollar.
• Wholesale Electricity Spot Market (WESM) charges falling by P0.2247 per kWh as Luzon’s supply situation improved.

Despite the rate hike, Meralco noted that its distribution charge has remained unchanged since August 2022, when it was reduced by P0.0360 per kWh.

With rising energy costs, households are advised to conserve electricity to manage expenses in the coming months.