Meralco raises electricity rate by 34 centavos per kWh for July 2026

Manila Electric Company (Meralco) on Friday announced it raised its electricity household rate for July 2026.

In an advisory, Meralco announced a P0.3428 per kilowatt-hour (kWh) hike this month, bringing the overall rate for a typical household to P14.8261per kWh from P14.4833 per kWh in June.

The adjustment could translate to a P69 increase in this month’s bill for a typical household consuming 200 kWh.

Meralco attributed the rate hike to higher generation charge, which went up by P0.1800 per kWh to P9.2504 from P9.0704 per kWh last month, largely owing to higher fuel prices.

Charges from Power Supply Agreements (PSAs) also increased by P0.2678 to P8.8694 per kWh due to the impact of the persisting Middle East conflict in the global energy market.

Wholesale Electricity Spot Market (WESM), meanwhile, rose to P8.0337 per kWh as demand in Luzon reached a record high of 14,534 megawatts (MW) on May 28, 2026.

Tighter power supply conditions in the grid pushed spot market prices higher, resulting in more frequent imposition of the secondary price cap at 11.1% of the time, Meralco said.

Taxes also registered an increase of P0.0960 per kWh.

Likewise, transmission and other charges similarly went up by P0.0668 per kWh.

Meanwhile, the Energy Regulatory Commission (ERC) extended the collection suspension of the P0.0371 per kWh Green Energy Auction Allowance (GEA-All) until August 2026.

The power distributor said 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 said its distribution charge has not moved since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022. —AOL, GMA News