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Saturday, Jun 14, 2025
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Meralco Announces Continued Reduction in Electricity Rates for June
The Manila Electric Company reduces power rates for the second consecutive month, benefiting typical households.
MANILA, Philippines – The Manila Electric Company (Meralco) has reported a reduction in electricity rates for June, marking the second consecutive month of decline.
In a statement released on June 11, Meralco announced a decrease of P0.1076 per kilowatt-hour (kWh), lowering the overall rate from P12.2628 to P12.1552 per kWh.
This adjustment translates to a decrease of approximately P22 in the total electricity bill for an average household consuming 200 kWh within the month.
The rate reduction is primarily attributed to a decrease in the generation charge, which fell by P0.1099 per kWh to P7.3552 per kWh.
The drop in generation charges is linked to reduced costs from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM).
Specifically, charges from PSAs and IPPs decreased by P0.3699 and P0.1034 per kWh, respectively, as a result of lowered fuel prices and enhanced average dispatch.
Moreover, WESM charges decreased by P0.6342 per kWh, reflecting improved supply conditions in the Luzon grid during the preceding month.
The average capacity on outage was noted to have decreased by 533 MW, even as average demand rose by 527 MW during the same period.
For the current reporting period, PSAs, IPPs, and WESM contributed 48%, 33%, and 18%, respectively, to Meralco’s total energy requirements.
Conversely, despite the decrease in generation charges, the transmission charge experienced a slight increase of P0.0214 per kWh due to elevated ancillary service charges from the National Grid Corporation of the Philippines (NGCP) through its Ancillary Service Procurement Agreements and the Reserve Market.
However, this increase was outweighed by the generation charge reduction.
Additionally, other charges, including taxes, also showed a net decrease of P0.0191 per kWh.
Meralco clarified that the pass-through charges for generation and transmission are payments made to power suppliers and the grid operator, while taxes and other universal charges are directed to government remittance.
The company highlighted that ongoing adjustments related to distribution continue to provide customer benefits, with a reduction of P0.2024 per kWh for residential customers through the distribution-related true-up adjustment.
In a statement released on June 11, Meralco announced a decrease of P0.1076 per kilowatt-hour (kWh), lowering the overall rate from P12.2628 to P12.1552 per kWh.
This adjustment translates to a decrease of approximately P22 in the total electricity bill for an average household consuming 200 kWh within the month.
The rate reduction is primarily attributed to a decrease in the generation charge, which fell by P0.1099 per kWh to P7.3552 per kWh.
The drop in generation charges is linked to reduced costs from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM).
Specifically, charges from PSAs and IPPs decreased by P0.3699 and P0.1034 per kWh, respectively, as a result of lowered fuel prices and enhanced average dispatch.
Moreover, WESM charges decreased by P0.6342 per kWh, reflecting improved supply conditions in the Luzon grid during the preceding month.
The average capacity on outage was noted to have decreased by 533 MW, even as average demand rose by 527 MW during the same period.
For the current reporting period, PSAs, IPPs, and WESM contributed 48%, 33%, and 18%, respectively, to Meralco’s total energy requirements.
Conversely, despite the decrease in generation charges, the transmission charge experienced a slight increase of P0.0214 per kWh due to elevated ancillary service charges from the National Grid Corporation of the Philippines (NGCP) through its Ancillary Service Procurement Agreements and the Reserve Market.
However, this increase was outweighed by the generation charge reduction.
Additionally, other charges, including taxes, also showed a net decrease of P0.0191 per kWh.
Meralco clarified that the pass-through charges for generation and transmission are payments made to power suppliers and the grid operator, while taxes and other universal charges are directed to government remittance.
The company highlighted that ongoing adjustments related to distribution continue to provide customer benefits, with a reduction of P0.2024 per kWh for residential customers through the distribution-related true-up adjustment.
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