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Power rates still low in January despite adjustment



Reflecting with adjustments for Meralco’s pass-through over/under-recoveries for the period January 2017 to December 2019, the power overall rate is still over P0.70 per kWh lower this month than January 2020’s rate of P9.4523 per kWh. The overall rate for January 2021 is pegged P8.7497 per kWh, the power distributor stated.

However, this month’s rate is slightly higher compared to the December 2020 rate as the typical household will pay an additional P0.2744 per kWh from last month’s P8.4753 per kWh This is equivalent to an increase of around P55 in the total bill of residential customers consuming 200 kWh. For the whole 2020, Meralco issued a series of power reduction 2020 totaling a P1.39 per kWh net overall rate decrease for the entire year.

“Mitigating this month’s rate increase is the inclusion of ERC-approved adjustments for Meralco’s pass-through over/under-recoveries for the period January 2017 to December 2019, said Meralco Vice President and head of Corporate Communications Joe Zaldarriaga.

Overall rate increase mainly brought about by higher generation charge
January 2021 generation charge is P4.4574 per kWh, P0.3058 higher than December’s generation charge of P4.1516 per kWh. This month’s generation charge is still lower than last year’s rate of P4.9039 per kWh.

PSA and IPP rates increased by P0.2723 and P0.2428 per kWh, respectively, as Luzon peak demand in December decreased by 252 MW, from 9,886 MW to 9,634 MW due to cooler temperature and more non-working holidays compared to November. Similarly, the demand for power in MERALCO’s franchise in December fell to its lowest level since lifting of the ECQ in May. Lower demand led to fixed costs from power suppliers being spread over lower energy volume, resulting in higher effective generation rates to consumers. Meanwhile, WESM rate decreased by P0.6135 per kWh.

PSAs, IPPs, and WESM provided 56.4%, 37.3%, and 6.3% of Meralco’s energy requirements, respectively.
Movements in Other Charges
Transmission charge for residential customers registered a reduction of P0.0236 per kWh due to the refund of transmission over-recoveries, while taxes and other charges registered a net decrease of P0.0078 per kWh, despite the recently approved increase in Feed-in Tariff Allowance (FIT-All).

In a Decision released last 29 December 2020, the ERC authorized the collection of a FIT-All of P0.0983 per kWh effective in the January 2021 billing cycle. This resulted in a P0.0488 per kWh increase in the FIT-All this month, from the previously approved FIT-All of P0.0495 per kWh.

Meanwhile, collection of the Universal Charge-Environmental Charge amounting to P0.0025 per kWh remains suspended, as directed by the ERC.

MERALCO’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 66 months, after these registered reductions in July 2015. MERALCO reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges.

Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the Universal Charges and the FIT-All are remitted to the government.

MERALCO continues to serve during General Community Quarantine (GCQ)
Customers may visit their nearest Meralco Business Center, which will continue to open its doors during the GCQ, and accept service applications, payments, and other transactions.

Strict safety measures continue to be implemented, like the “No Mask, No Entry” rule, Social Distancing and Temperature Check.

Frontliners are available and ready, but strictly follow Social Distancing guidelines. Visitors can rest assured that these frontliners have passed the rapid COVID-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in the Meralco branches to protect both the customer and the frontliner.

But, for maximum safety and convenience, Meralco still encourages customers to use Meralco Online to transact from the safety of their homes. Multiple options for transactions have also been offered by the distribution utility, including the Meralco Mobile App via, Meralco Online via, and the Meralco authorized payment channels at

For more information and concerns, customers may visit MERALCO’s website at, its social media accounts, twitter @MERALCO and Facebook at or may also call the MERALCO Hotline at 16211.