For residential customers consuming 200 kWh, the increase translates to an additional P98 in their monthly bill.
Higher generation charge
The generation charge accounted for the bulk of the rate hike, rising by P0.3407 per kWh this month.
Charges from Power Supply Agreements (PSAs) and Independent Power Producers (IPPs) rose by P0.4476 and P0.4992 per kWh, respectively. The increase was driven by higher fuel prices triggered by the recent Israel-Iran conflict and a weaker peso, which hit its lowest level since March 2025. These factors affected about 58 percent and 99 percent of PSA and IPP costs, respectively, due to their dollar-denominated components.
The increase was slightly offset by a P0.1703 per kWh reduction in charges from the Wholesale Electricity Spot Market (WESM). The supply situation in the Luzon grid improved in June, as average demand dropped by over 770 MW, more than compensating for the 490 MW increase in average outage capacity.
For the period, PSAs supplied 56 percent, IPPs 28 percent, and WESM 16 percent of Meralco’s total energy requirement.
Other charges also up
The transmission charge increased by P0.0734 per kWh, due to higher reserve market costs. Other charges, including taxes and fees, posted a net increase of P0.0742 per kWh.
Meralco emphasized that pass-through charges—such as generation and transmission—are paid directly to power suppliers and grid operators. Taxes and universal charges are remitted to the government.
Meanwhile, Meralco’s distribution charge remains unchanged since its reduction of P0.0360 per kWh in August 2022. Customers also continue to benefit from the distribution-related true-up adjustment of P0.2024 per kWh, effectively lowering overall bills.
Rainy season electrical safety reminder
Meralco also issued a safety advisory amid the ongoing rainy season. Customers were urged to:
Turn off the main power switch or breaker during flooding.
Keep hands dry when handling electrical devices.
Ensure all wiring and outlets are dry before use.
Have a licensed electrician inspect drenched appliances or outlets.
Additionally, customers should charge communication gadgets and ensure open communication channels during weather disturbances, Meralco said. —Ed: Corrie S. Narisma
