MERALCO CUSTOMERS TO SEE LOWER POWER RATES IN SEPTEMBER

MANILA, PHILIPPINES, 10 SEPTEMBER 2025 –The Manila Electric Company (Meralco) announced today a decrease of P0.1852 per kWh this September due to lower generation charge.

This brings the overall rate for a typical household to P13.0851 per kWh from P13.2703 per kWh the previous month.

“For residential customers consuming 200 kWh, they will see a reduction of P37 in their total electricity bill. We hope that along with relatively lower consumption during this period, this rate cut will bring relief to our customers,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said.

Lower generation charge pulls down overall rates

The overall rate reduction this month was mainly due to lower generation charge as it went down by P0.2603 per kWh, owing to decrease in the costs of Independent Power Producers (IPPs) and Power Supply Agreements (PSAs).

Charges from IPPs and PSAs went down by P1.3459 and P0.3660 per kWh, respectively, due to the appreciation of the local currency against the US Dollar and decrease in international fuel prices. The stronger Peso affected around 99% of IPP costs and 57% of PSA costs that were dollar denominated.

These decreases were more than enough to offset the higher Wholesale Electricity Spot Market (WESM) charges and the start of collection of the contract price adjustment of Sual Power, Inc. (SPI) and South Premiere Power Corporation (SPPC).

WESM charges increased by P0.3785 per kWh, as average demand in the Luzon grid and average capacity on outage increased by 182 MW and 132 MW, respectively.

Meanwhile, the implementation of SPI and SPPC’s contract price adjustments follows the Supreme Court’s ruling that affirmed the right to invoke the “Change in Circumstance” clause of their supply agreements and allowed the generation companies to collect price adjustments to reflect additional fuel costs. As a result, the Energy Regulatory Commission approved a total amount of P5.1 billion, to be collected over a period of six (6) months, starting this September. This is around P0.26 per kWh for this month.

PSAs, IPPs, and WESM accounted for 65%, 29%, and 6%, respectively, of Meralco’s total energy requirement for the period.

Transmission and other charges

The transmission charge, another pass-through component of the electricity bill, went up by P0.1130 mainly due to higher ancillary service charges from the Reserve Market.

Other charges, including taxes, meanwhile registered a net decrease of P0.0379 per kWh.

Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance are all remitted to the government.

Meralco reiterates that its distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022.

Customers also continue to benefit from the ongoing implementation of the distribution-related true-up adjustment, equivalent to a reduction of P0.2024 per kWh for residential customers.

Meralco reminds customers to practice electrical safety, energy efficiency

As the rainy season persists, Zaldarriaga reminded customers to practice electrical safety especially if there is flooding.

Some electrical safety tips that customers can practice are:

• Switch off the main electrical power switch or circuit breaker in case of flooding.
• Keep hands dry when touching electrical appliances and facilities.
• Make sure that all electrical wires, connectors, and other wiring devices are completely dry.
• If outlets or appliances are drenched, have a licensed electrician check these before using.

“To better manage their electricity consumption, we also continue to remind our customers to practice energy efficiency,” Zaldarriaga said.

“Among the practical tips customers can practice are regular cleaning of air conditioner filters and electric fan blades, ironing clothes in bulk, refraining from overfilling refrigerators, and using LED bulbs for cost-saving lighting,” he added.

Meralco customers can also have better control of their monthly electricity bills with the help of the Meralco Appliance Calculator that provides information on the energy consumption of appliances and gadgets.

Customers can report their concerns through the My Meralco app or through Meralco’s official social media accounts on Facebook (www.facebook.com/meralco) and X formerly Twitter (@meralco). They may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211.|