BUSINESS

Meralco rate hike eats into October bill relief

Maria Bernadette Romero · Oct 13, 2026, 11:48 PM

MERALCO customers will have to tighten their belts as their power bills rise this month due to higher power generation costs. However, consumers may expect relief starting November following approval by the Energy Regulatory Commission of a P2.64-billion refund to be spread over six months. — DAILY TRIBUNE IMAGES

Electricity bills of more than 8.3 million Manila Electric Co. (Meralco) customers are set to rise this October despite ongoing refunds, with a fresh rate increase adding around P64 to the monthly expenses of a typical household consuming 200 kilowatt-hours (kWh).

Meralco announced Tuesday an overall rate increase of P0.3191 per kWh, bringing its residential rate to P15.0615 per kWh from P14.7424 in September and ending two consecutive months of rate reductions.

Two simultaneous refunds

The increase followed Meralco’s continued implementation of two simultaneous refunds totaling P1.0139 per kWh for residential customers, covering previous regulatory periods from July 2022 to December 2025.

Consumers, however, are expected to receive additional relief beginning November after the Energy Regulatory Commission (ERC) approved another P2.64-billion refund to be distributed over six months.

Under the latest refund, residential customers will receive P0.1733 per kWh, equivalent to about P34.66 monthly for households consuming 200 kWh.

Regulator’s prompt action on latest fund application

“We welcome the regulator’s prompt action on our latest refund application, which we hope will give immediate relief to consumers,” Meralco senior vice president and head of Regulatory Management Jose Ronald V. Valles said.

The additional refund covers excess collections during the January to June 2026 period.

Separately, the ERC approved a new average distribution rate of P1.48 per kWh for Meralco covering July 2026 to June 2030, following more than 15 years without a regulatory rate reset.

Meralco said it welcomed the decision, which is expected to provide greater certainty for investments in network modernization and service reliability.

“We believe that this will allow Meralco to move forward with greater clarity as we pursue investments and initiatives to modernize our distribution network and enhance service delivery,” Valles said.

“As outlined in our rate reset application and detailed in the public hearings, these include investments in advanced metering infrastructure, cybersecurity, and other network modernization projects that will help improve operational efficiency, strengthen system reliability, and deliver better service to our millions of customers in the next four years,” he added.

El Niño could increase household power consumption

Meanwhile, Meralco warned that the anticipated El Niño phenomenon could further increase household electricity consumption as hotter temperatures drive demand for cooling.

“With higher temperatures expected during the El Niño, we anticipate increase in electricity demand. We therefore call on our customers to be mindful of their consumption and to practice energy efficiency, which will also help in managing their electricity bills,” Meralco vice president and head of Corporate Communications Joe R. Zaldarriaga said.