The Manila Electric Company (Meralco) has announced that electricity rates for May have remained stable as it continued to urge households and businesses to continue being mindful of their consumption as this could still affect their actual monthly bills for the month.
Meralco reported a modest reduction of P0.0151 per kilowatt-hour (kWh), bringing the overall rate for a typical household down to P14.3345 per kWh this month.
Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga explained that the reduction was achieved through proactive measures led by the Energy Regulatory Commission (ERC).
“Despite initial indications of an increase, Meralco power rates this May had a modest reduction. This was achieved through the proactive efforts led by the ERC to cushion the impact of potentially high rates as a result of the geopolitical tensions that ultimately affect energy prices,” Zaldarriaga said.
He added that while rates are stable, actual bills may still rise depending on consumption, which typically spikes during the summer months.
ERC-approved measures offset increase in generation charge
Various mitigating measures as approved and directed by the ERC helped offset an increase in the generation charge.
These include the acceleration of Meralco’s ongoing refund, which increased the refund rate for residential customers by P0.2254 per kWh.
This month’s taxes and other charges also had a net decrease of P0.1482 per kWh. The ERC suspended the collection of the P0.0371 per kWh Green Energy Auction Allowance (GEA-All) from May to June 2026.
This May, electric consumers will also partially benefit from the long-delayed implementation of the value-added tax (VAT) exemption for power generated using indigenous natural gas. The VAT exemption was provided under Republic Act No. 12120, or the Philippine Natural Gas Industry Development Act, which was enacted back in January 2025.
Also contributing to the decrease in the overall electricity rate was the transmission charge, which went down by P0.0493 per kWh for residential customers.
Generation charge increase offset by reduction in other bill components
The other bill components were able to offset the increase in generation charge, which in turn was due to the significant P7.7239 per kWh increase in charges from the Wholesale Electricity Spot Market (WESM), in particular, the line rental component.
As a mitigating measure, Meralco secured approval from the ERC to immediately reflect the line rental caps under its ERC-approved Power Supply Agreements (PSAs) for May 2026 billing. As a result, a substantial portion of the line rental amount from the WESM will be borne by Meralco’s suppliers, pulling down the charges from PSAs and partially offsetting the higher WESM charges.
These efforts of Meralco and ERC are still intended to cushion impact of upward pressure in rates on consumers.
Meanwhile, charges from the Sta. Rita and San Lorenzo gas plants of First Gas/Prime CoreGen increased by P0.1786 per kWh due to higher fuel costs and the Peso’s depreciation that affected 99% of First Gas/Prime CoreGen costs which were dollar-denominated.
WESM, PSAs, and First Gas/Prime CoreGen accounted for 7%, 73%, and 20%, respectively, of Meralco’s total energy requirement for the period.
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 urged to practice energy efficiency
Even as rates remained steady in May, Meralco reminded customers that consumption patterns ultimately determine their electricity bills. The distribution utility urged households to continue practicing energy efficiency to better manage their consumption and power bills this dry season.
“While overall electricity rates have gone down, the dry season is typically marked by higher consumption, especially from cooling appliances, which can still drive bills upward. By being more mindful of their power consumption and observing energy efficiency, customers can take better control of their electricity bills,” Zaldarriaga said.
Among the practical energy efficiency tips customers can practice are unplugging appliances when not in use, optimizing thermostat settings of air conditioners to 25°C and regular cleaning of filters, ironing clothes in bulk, refraining from overfilling refrigerators, and using LED bulbs for cost-saving lighting.
Meralco customers can also have better control of their monthly electricity bills with the help of the Meralco Appliance Calculator that provides information on the energy consumption of appliances and gadgets.
