Customers of Meralco are set to face higher electricity bills starting March after regulators allowed four power generation companies to recover a combined ₱31.34 billion following the termination of their power supply agreements due to what was described as a change in circumstances.
In separate orders, the Energy Regulatory Commission authorized San Miguel-backed South Premier Power Corp. and San Miguel Energy Corp., Ayala-led ACEN Corp., and Panay Energy Development Corp. to recover the approved amounts from Meralco customers through additional generation charges.
The recovery stems from the termination of power supply agreements that were affected by external developments, including sharp increases in fuel costs. Regulators said the approved charges would translate to an average rate impact of about ₱0.28 per kilowatt-hour, although the collection periods were extended to reduce the immediate effect on monthly bills.
ERC Chairperson Francis Saturnino Juan said the recovery periods were stretched to limit the impact on consumers, adding that the overall effect on Meralco’s rates was expected to be minimal or none. He noted that Meralco has been implementing a change-in-circumstances adjustment averaging ₱0.28 per kilowatt-hour per month since September 2025, a scheme that will remain in place until February 2026.
To further manage the impact, the remaining adjustments were directed to begin in March 2026. Under the ruling, South Premier Power Corp. was allowed to recover ₱15.85 billion, while San Miguel Energy Corp. may recover ₱13.36 billion. These amounts will be charged to Meralco customers at rates of ₱0.1246 per kilowatt-hour and ₱0.1051 per kilowatt-hour, respectively, over a 36-month period starting with the March 2026 billing cycle.
The decision follows a ruling by the Supreme Court affirming a Court of Appeals decision that allowed the increase in generation charges in 2022. The courts cited soaring fuel prices at the time, driven by the Russia-Ukraine war and Indonesia’s coal export ban, as grounds for granting the appeals of the power firms and Meralco.
The ERC also approved the recovery of ₱1.75 billion by ACEN Corp., to be collected at ₱0.0427 per kilowatt-hour over 12 months after it was allowed to terminate its power supply agreement with Meralco. Meanwhile, Panay Energy Development Corp. was authorized to recover ₱380.62 million, equivalent to ₱0.0093 per kilowatt-hour, also to be collected over a 12-month period.
The approved recoveries add another layer of charges to electricity bills in Meralco’s franchise area, which covers Metro Manila and nearby provinces. With no alternative distribution provider, consumers will automatically shoulder the additional costs once the new charges take effect.
