Manila Electric Company (Meralco) customers can expect lower electricity bills this June as the utility firm implements another round of rate reductions, primarily due to a drop in generation charges—even as transmission charges slightly rose.
In an announcement, Meralco said its household power rate is being reduced by ₱0.11 per kilowatt-hour (kWh) for the June billing cycle. This marks the second consecutive month the utility has cut its electricity rate.
The reduction could mean a savings of roughly ₱22 for a typical household consuming 200 kWh.
Specifically, the total rate will decrease by ₱0.1076 per kWh, from ₱12.2628 in May to ₱12.1552 this month.
“Our customers will continue to benefit from lower power rates this month mainly due to lower generation charge,” said Joe Zaldarriaga, Meralco vice president and Corporate Communications head.
The generation charge, which accounts for the bulk of electric bills, dropped by ₱0.1099 per kWh, settling at ₱7.3552 per kWh. The decrease came from lower costs under Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM).
Charges from PSAs fell by ₱0.3699 per kWh, while IPPs saw a reduction of ₱0.1034 per kWh, thanks to lower fuel costs and better dispatch performance. Meanwhile, WESM charges were slashed by ₱0.6342 per kWh due to a more stable power supply on the Luzon grid during May.
According to Meralco, despite a rise in electricity demand of 527 MW, a reduction in average plant outages by 533 MW helped improve the supply situation.
In terms of sourcing, Meralco said its energy requirement was covered 48% by PSAs, 33% by IPPs, and 18% by WESM.
On the other hand, transmission charges increased by ₱0.0214 per kWh, driven by higher ancillary service charges from the National Grid Corporation of the Philippines (NGCP).
Still, the generation charge drop outweighed this slight hike. Additionally, taxes and other charges showed a net decrease of ₱0.0191 per kWh.
Meralco clarified that pass-through charges—generation and transmission costs—go directly to power suppliers and the grid operator, while other collections like taxes and subsidies are remitted to the government.
The utility also pointed out that its distribution charge has remained unchanged since a ₱0.0360 per kWh cut in August 2022. Furthermore, customers continue to benefit from an ongoing true-up adjustment that reduces bills by ₱0.2024 per kWh.
Lastly, Meralco encouraged eligible customers to apply for subsidies such as the lifeline rate program and senior citizen discounts. Households under the Pantawid Pamilyang Pilipino Program (4Ps) or certified by their local Social Welfare and Development Office can qualify for discounts—provided they apply and are approved.
