Meralco customers face higher electricity prices amid peso depreciation

Customers of the Manila Electric Company (Meralco) should expect electricity prices to go up as the continuing depreciation of the Philippine peso is seen to affect the power generation costs.

The local currency sank to its 33rd historic low against the US dollar at P64.17:$1 on Tuesday amid rising global crude oil prices, which puts pressure on demand for the greenback.

At a press conference in Pasig City on Wednesday, Meralco senior vice president and regulatory management head Jose Ronald Valles said, “Definitely it will have an impact, especially on the passed through generation cost because than 50% of our source are dependent on forex (foreign exchange) especially our gas-powered power suppliers.”

“That would probably increase generation cost but we’re finding ways how to manage and offset the increases brought about by forex depreciation,” Valles said.

For this month, Meralco raised its household electricity rate by 31.91 centavos per kilowatt-hour (kWh) to P15.0615 per kWh from P14.7424 per kWh in September, driven by higher generation costs.

This translates to an increase of about P62 in the total electricity bill for customers consuming 200 kWh.

For Meralco chairman and CEO Manny Pangilinan, however, the peso’s weakness will not impact the company’s distribution charge.

“For distribution, speaking for Meralco, we have no foreign debts….[so] there is no impact… negative impact on the pricing,” Pangilinan said.

The Energy Regulatory Commission (ERC) already approved Meralco’s rates for the July 2026 to June 2030 regulatory period under ERC Case No. 2026-016.

The regulator approved a total revenue requirement of around P342 billion for Meralco over the four-year period, P190 billion, or about 36%, lower than the P532 billion sought by the power distributor.

The ERC also approved an average distribution rate of P1.48 per kilowatt-hour (kWh) for 2027, lower than Meralco’s proposed rate of P2.34 per kWh and the P1.60 to P1.98 per kWh proposed by some intervenors in the case.

Meanwhile, in the first nine months of 2026, Meralco saw it bottomline grow by 12% to P44.8 billion, from P40 billion in the same period last year due to stronger contributions from its generation and retail electricity supply businesses which complemented its power distribution operations.

“For full-year 2026, we are on track to achieve a consolidated core net income of approximately P56.6 billion, barring any significant unforeseen developments,” Pangilinan said. —NB, GMA News