Meralco Announces Unexpected Drop in June Electricity Rates Following ERC Directive

MANILA — The Manila Electric Company (Meralco) reversed its previous announcement of a rate increase for June, instead declaring a significant reduction in electricity prices following an order from the Energy Regulatory Commission (ERC).

According to Philippines News Agency, the reduction was prompted by the ERC’s decision to stagger the collection of generation costs from May’s Wholesale Electricity Spot Market (WESM) purchases across four months, starting with the June billing cycle. This adjustment will lead to a decrease of PHP1.9623 per kilowatt-hour (kWh) in the electricity rates for June, a substantial shift from the initially projected increase of PHP0.6436 per kWh.

With this change, Meralco customers will now see their rates drop to PHP9.4516 per kWh from the previous rate of PHP11.4139 per kWh. For residential consumers using at least 200 kWh per month, this translates to a PHP392 savings on their monthly electricity bill. The primary factor in the rate reduction is a PHP1.8308 per kWh decrease in the generation charge, while transmission charges and feed-in tariff allowances will remain steady at PHP0.1450 per kWh and PHP0.0474 per kWh, respectively. Additionally, there will be a net reduction of PHP0.3239 per kWh in taxes and other charges.

Joe Zaldarriaga, Meralco’s Vice President and Head of Corporate Communications, affirmed the company’s commitment to following the ERC’s directive and adjusting billing due dates to provide customers more flexibility. However, Zaldarriaga also advised customers to anticipate increases in the generation charge from July to September, as the deferred amounts begin to be collected.

He detailed that approximately PHP0.77 per kWh will be added to the generation charge in the coming three months, as part of the staggered collection strategy to recover the deferred costs associated with the ERC’s recent rulings on WESM charges.