Insider Spotlight
Power rates up again: Meralco raises its November electricity rate by P0.1520 per kWh, bringing the overall charge to P13.4702 per kWh
A typical household using 200 kWh will pay aboutP30 more this month
Cost drivers: The increase was mainly due to higher transmission charges from NGCP’s ancillary services and the new FIT-All rate mandated by the ERC
Slight relief: A P0.1008 per kWh drop in generation charges from lower fuel and WESM costs helped cushion the overall hike
For residential customers consuming 200 kWh, the adjustment translates to an increase of about P30 in their total electricity bill for the month, Meralco said in a statement on Nov. 10 2025.
Transmission and FIT charges push rates up
According to Meralco, the higher November rate was primarily driven by an increase in the transmission charge and the implementation of a new feed-in tariff allowance (FIT-All).
The transmission charge rose by P0.1468 per kWh for residential customers due to higher ancillary service costs from the reserve market incurred by the National Grid Corporation of the Philippines (NGCP).
In addition, the Energy Regulatory Commission (ERC) directed collecting agents nationwide to apply a new FIT-All rate of P0.2073 per kWh beginning November, up from P0.1189 per kWh previously. This raised the FIT-All component by P0.0884 per kWh.
Generation charge decline cushions impact
The overall increase was partly offset by a P0.1008 per kWh decrease in the generation charge to P7.90, from P8.0008 per kWh in October. The decline was attributed to the lower charges under Power Supply Agreements (PSAs) and the Wholesale Electricity Spot Market (WESM).
PSA rates fell by P0.2985 per kWh on account of reduced fuel costs, which more than offset the peso’s depreciation against the US dollar. WESM charges also decreased by P0.6273 per kWh following downward billing adjustments despite tighter supply conditions in October.
Independent Power Producer (IPP) rates, however, increased by P0.2481 per kWh due to the peso’s weakness, affecting the 99 percent of IPP costs which are dollar-denominated.
Other charges and stable distribution rate
Other charges—including system loss, subsidies, taxes, and universal charges—registered a net increase of P0.0176 per kWh. These include the ERC-approved resumption of the collection of the Universal Charge–Environmental Charge, which added P0.0025 per kWh.
Meralco stressed that its distribution charge has remained unchanged since it implemented a P0.0360 per kWh cut in August 2022. —Ed: Corrie S. Narisma
