“For our residential customers with a typical consumption of 200 kWh, this translates to a decrease of around P71 in their total electricity bill this month,” said Joe R. Zaldarriaga, Meralco vice president and head of corporate communications.
“With the holiday season approaching, we hope this rate adjustment gives much-needed relief for our customers,” he added.
Lower transmission, generation costs drive the reduction
Meralco said this month’s rate drop was mainly driven by reductions in transmission and generation charges, which together comprise the bulk of a consumer’s electricity bill.
The transmission charge decreased by P0.1462 per kWh, following lower ancillary service costs incurred by the National Grid Corporation of the Philippines (NGCP) through the Reserve Market.
Generation costs were also lower, declining by P0.1358 per kWh, largely due to reduced charges from Independent Power Producers (IPPs).
IPP rates fell by P0.2127 per kWh, attributed to lower natural gas prices, improved plant dispatch, and the appreciation of the Philippine peso, which helped temper costs—99 percent of which are dollar-denominated.
PSA, WESM charges inch up
While charges from Power Supply Agreements (PSAs) and the Wholesale Electricity Spot Market (WESM) posted slight increases—P0.0706 per kWh and P0.8086 per kWh, respectively—these were not enough to offset the overall downward trend.
PSA rates rose partly due to the scheduled maintenance of San Buenaventura Power Ltd. Co. (SBPL) from Oct. 27 to Nov. 25, 2025.
WESM charges, meanwhile, increased despite lower demand in November due to smaller downward adjustments to market bills.
IPP, PSA, and WESM sources accounted for 21 percent, 73 percent, and 6 percent of Meralco’s energy requirements during the period.
Taxes and other charges likewise registered a P0.0737 per kWh net reduction.
Meralco emphasized that pass-through charges for generation and transmission are paid to suppliers and the grid operator, while taxes, universal charges, and FIT-All collections are remitted to the government.
The company’s own distribution charge has remained unchanged since it implemented a P0.0360 per kWh cut in August 2022.
Safety reminder
With households preparing for holiday festivities, Meralco urged the public to follow electrical safety practices to avoid accidents and fire hazards.
“As we enter the season of festivities, we remind all our customers to continue practicing electrical safety to avoid any possible untoward incident. Our crews remain on standby 24/7 to respond to concerns,” Zaldarriaga said.
The company reminded customers to unplug lights when not in use, inspect Christmas décor for damage, avoid “octopus” connections, use proper light hangers instead of nails or staples, and keep a fire extinguisher at home for emergencies. —Ed: Corrie S. Narisma
Customers can report their concerns through the MyMeralco app or through Meralco’s official social media accounts on Facebook (www.facebook.com/meralco) and X formerly Twitter (@meralco). They can also contact the Meralco Hotline at 16211.
