Electricity customers of Meralco can look forward to lower bills this June, as the power distributor has announced a fresh ₱0.11 per kilowatt-hour (kWh) reduction in household electricity rates.
The rate cut—driven primarily by lower generation charges—marks the second straight month of relief for consumers, even though there was a minor increase in transmission charges.
According to Meralco, this adjustment will reduce the bill of a typical residential user (consuming 200 kWh) by about ₱22.
The total rate for June will drop from ₱12.2628 per kWh in May to ₱12.1552, reflecting a decrease of ₱0.1076 per kWh.
“This month’s reduction is mostly due to lower generation charges,” said Meralco spokesperson Joe Zaldarriaga.
The generation charge declined by ₱0.1099 per kWh, settling at ₱7.3552 per kWh. This was attributed to lower costs from Power Supply Agreements (PSAs), Independent Power Producers (IPPs), and the Wholesale Electricity Spot Market (WESM):
PSA charges dropped by ₱0.3699 per kWh
IPP rates fell by ₱0.1034 per kWh
WESM prices decreased by ₱0.6342 per kWh, thanks to improved power supply conditions in Luzon
Meralco noted that although average demand rose by 527 MW, this was offset by a 533 MW reduction in generation outages, easing pressure on supply.
For this billing period, energy sources were split as follows: 48% from PSAs, 33% from IPPs, and 18% from WESM.
However, transmission charges saw a ₱0.0214 per kWh increase, mainly due to higher costs from ancillary services provided under NGCP’s procurement agreements and reserve market operations.
Despite that, the savings from generation charges were enough to offset the increase. Other charges, including taxes, also registered a ₱0.0191 per kWh net reduction.
Meralco reiterated that generation and transmission costs are passed directly to power suppliers and grid operators, while taxes and fees are remitted to the government. The utility’s own distribution charge has remained unchanged since a cut in August 2022.
On top of that, customers are still benefitting from an ongoing distribution-related true-up adjustment, amounting to a ₱0.2024 per kWh reduction for residential users.
Meralco is also urging qualified households to apply for subsidies, such as the lifeline rate program and senior citizen discounts. Those enrolled in the 4Ps or certified as low-income by their local Social Welfare and Development Office may be eligible for these benefits—but only with an approved application.
