Meralco hikes power rate by 64 centavos per kWh this March 2026

Customers of the Manila Electric Company (Meralco) should expect higher power bills this month as the power distributor hiked its household electricity rate due to higher transmission and generation costs.

In an advisory on Tuesday, Meralco announced an increase of P0.6427 per kilowatt-hour (kWh) in its power rate for March 2026, bringing the overall rate for a typical household to P13.8161 per kWh this month from P13.1734 per kWh in February 2026.

The upward adjustment translates to an increase of around P129 in the power bill of a typical household consuming 200 kWh.

Meralco said the power rate hike was driven by P0.2880 per kWh increase in transmission charge for residential customers which was due to a 70% increase in ancillary service charges incurred by the National Grid Corporation of the Philippines (NGCP) from the Reserve Market. 

This as costs from the Reserve Market accounted for almost half of the total transmission charge this billing month, according to the power distribution utility.

Moreover, generation charge rose by P0.2209 per kWh to P7.8607 per kWh.

Meralco said the fixed charges from the second extension of the Power Purchase Agreement (PPA) with First Gas-Sta. Rita added around P0.38 per kWh to this month’s generation charge, which offset a P1.0952 per kWh reduction in charges from Wholesale Electricity Spot Market (WESM), as supply conditions in the Luzon grid improved.

This month’s generation charge already included the P0.2817 per kWh contract price adjustment of ACEN Corporation, Panay Energy Development Corp., South Premiere Power Corp. (SPPC) and Sual Power Inc. (SPI) approved by the Energy Regulatory Commission (ERC). 

“This is equivalent to about P789 million in generation costs for this billing month, the impact of which was more than offset by the completion of the recovery of the previous contract price adjustment of SPPC and SPI, totaling P858 million or around P0.30 per kWh,” it said.

Meanwhile, Meralco said other charges that include taxes registered a net increase of P0.1338 per kWh.

“This month’s rate also reflected the implementation of the new uniform national lifeline subsidy rate of P0.01 per kWh in accordance with a recent ERC directive,” the company said.

Meralco said pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively; while taxes, universal charges, and renewable energy subsidies are all remitted to the government.

The company said that its distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer in August 2022.

Meralco said it is backing the government’s call for energy efficiency amid Middle East Conflict and approaching dry season.

With this, the power distributor is urging customers to continue practicing energy efficiency to better manage consumption as the country also braces for the dry season, when demand traditionally peaks. —AOL, GMA Integrated News