MANILA — The Manila Electric Company (Meralco) will increase power rates in February 2026 due to higher transmission charges, ending two months of reductions, the company said.

Meralco vice president and head of corporate communications Joe Zaldarriaga said rates will rise by PHP0.2226 per kilowatt-hour (kWh), bringing the total to PHP13.1734 per kWh. Households consuming 200 kWh per month can expect an increase of about PHP45.

Zaldarriaga explained that transmission charges went up by PHP0.1975 per kWh due to higher ancillary service costs from the reserve market and an additional PHP0.0779 per kWh for the universal charge for missionary electrification (UCME), which subsidizes power in off-grid and remote areas.

The impact of higher transmission charges was partly offset by a drop in generation charges, which fell by PHP0.1073 per kWh to PHP7.639 per kWh due to lower rates from independent power producers. However, generation charges were limited by higher prices from the wholesale electricity spot market amid tighter supply in the Luzon grid. Charges from power supply agreements also rose by PHP0.0483 per kWh ahead of scheduled maintenance shutdowns of Excellent Energy Resources Inc. and South Premier Power Corporation. Zaldarriaga noted the shutdowns are routine and meant to prepare for higher electricity demand during the dry season.

Meralco will continue granting discounts under the government’s lifeline subsidy program for low-income consumers using up to 50 kWh per month, mostly beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps).

Households consuming 50 kWh or less receive a 100 percent discount, while those using 51–70 kWh get a 35 percent discount, and households using 71–100 kWh receive a 20 percent discount.

Under an Energy Regulatory Commission (ERC) directive, a uniform national lifeline subsidy rate of PHP0.01 per kWh will take effect in March 2026, with the new discount structure applied the following month.

“We welcome this directive from the ERC which we hope will provide additional relief to our qualified customers,” Zaldarriaga said.

(PNA)