Power rates in Metro Manila will slightly decline this May, even after earlier projections pointed to another increase in electricity bills. Manila Electric Company (Meralco) announced a small reduction in electricity rates after the Energy Regulatory Commission (ERC) approved several mitigating measures aimed at easing the projected hike.
The overall residential rate dropped by ₱0.0151 per kilowatt-hour, bringing the rate down to ₱14.3345 per kWh from ₱14.3496 in April. For households consuming 200 kWh monthly, the adjustment translates to around ₱3 less on electricity bills.
Meralco said the decrease came despite a sharp rise in generation charges, which increased to ₱8.7942 per kWh from ₱8.3864 last month. The company attributed the increase to higher Wholesale Electricity Spot Market (WESM) prices, rising fuel costs linked to the Iran conflict and stronger electricity demand during the summer season.
To help offset the increase, the ERC approved several interventions, including the immediate implementation of line rental caps under Meralco’s power supply agreements. The measure allows generation companies to absorb excess transmission-related charges instead of passing the entire amount on to consumers.
“Despite initial indications of an increase, Meralco power rates this May had a modest reduction. This was achieved through the proactive efforts led by the Energy Regulatory Commission to cushion the impact of potentially high rates as a result of the geopolitical tensions that ultimately affect energy prices,” Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga said regarding the ERC-backed measures that softened this month’s electricity costs.
The ERC also accelerated Meralco’s refund program by increasing the refund rate for residential consumers. Regulators likewise suspended the collection of the Green Energy Auction Allowance until June and implemented a value-added tax exemption on electricity generated from indigenous natural gas.
Meanwhile, Meralco reminded consumers that actual monthly bills could still increase if electricity consumption rises during the dry season. The company said cooling appliances and heavier household usage during hotter months may still push overall consumption higher despite the lower rate.
