Meralco cuts power rate by P0.0151/kWh this May 2026

Customers of the Manila Electric Company (Meralco) should expect a sigh of relief this month as the power distributor slashed its household rate for May.

In an advisory on Wednesday, Meralco announced a P0.0151 per kilowatt-hour (kWh) reduction in its household electricity rate for May 2026.

This brought the overall household rate down to P14.3345 per kWh this month from P14.3496 per kWh in April.

The downward adjustment could translate to a P3.02 decrease in this month’s bill of a typical household consuming 200 kWh.

“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 (ERC) to cushion the impact of potentially high rates as a result of the geopolitical tensions that ultimately affect energy prices,” said Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga.

“While our customers stand to benefit from relatively stable rates this May, we would like to advise our customers that the bills that they will receive may still go up depending on their actual consumption, which usually increases during the summer months,” added Zaldarriaga.

Meralco said ERC-approved measures —such as the acceleration of Meralco's ongoing refund which increased the refund rate for residential customers by P0.2254 per kWh to P0.4278 from the P0.2024 per kWh previously— offset the increase in generation charge.

To recall, the ERC directed Meralco to refund the remaining P14.2 billion over a period of 12 months, instead of the original remaining refund period of two years.

Moreover, taxes and other charges also decreased by a net of P0.1482 per kWh this month, following the suspension of the collection of the P0.0371 per kWh Green Energy Auction Allowance (GEA-All) from May to June 2026, according to Meralco.

Electricity consumers will also partially benefit from the implementation of the value-added tax (VAT) exemption for power generated using indigenous natural gas.

The VAT exemption was provided under Republic Act No. 12120, or the Philippine Natural Gas Industry Development Act, which was enacted back in January 2025.

Also contributing to the decrease in the overall electricity rate was the transmission charge, which went down by P0.0493 per kWh for residential customers.

Meanwhile, higher Wholesale Electricity Spot Market (WESM) charges, fuel prices and peso depreciation drove the generation charge to P8.7942 per kWh from a previous rate of P8.3864 per kWh.

Meralco said pass-through charges for generation and transmission are paid by Meralco to power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance are all remitted to the government.

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