Meralco cuts power rates for second straight month as June supply costs dip

Insider Spotlight:

• Meralco slashed June power rates by P0.1076/kWh
• Lower charges from PSAs, IPPs, and WESM drive savings
• Eligible customers urged to apply for lifeline rate and senior discounts

Manila Electric Co. (Meralco) announced another reduction in electricity rates for June 2025, citing lower generation charges as the main driver for the cut. This marks the second consecutive month of rate reductions.

The numbers:

The overall rate dropped by P0.1076 per kilowatt-hour (kWh), bringing the residential charge down to P12.1552/kWh from P12.2628/kWh in May. For households consuming 200 kWh, this translates to an approximate P22 drop in monthly bills.

“Our customers will continue to benefit from lower power rates this month mainly due to lower generation charge,” said Meralco vice president and corporate communications head Joe Zaldarriaga.

Driving the change:

The generation charge fell by P0.1099/kWh to P7.3552/kWh, due to:

• A P0.3699/kWh drop in Power Supply Agreements (PSAs)
• A P0.1034/kWh decrease in Independent Power Producers (IPPs)
• A P0.6342/kWh reduction from the Wholesale Electricity Spot Market (WESM)

The Luzon grid benefited from a net improvement in supply despite slightly higher demand.

What offset the gains:

Transmission charges rose by P0.0214/kWh, driven by ancillary services from the National Grid Corporation of the Philippines. However, this was outweighed by the drop in generation charges. Other fees and taxes posted a net decrease of P0.0191/kWh.

What’s next:

Meralco encouraged qualified customers to apply for the lifeline rate subsidy and senior citizen discount. It also reminded consumers to practice electrical safety amid the start of the rainy season, with warnings against using wet outlets or appliances.