MANILA — Customers of Manila Electric Company (Meralco) will see higher electricity bills this June after power rates increased by nearly ₱0.15 per kilowatt-hour (kWh), driven mainly by higher generation charges.

During a virtual briefing on Thursday, Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga said the overall rate for a typical household rose to ₱14.4833/kWh from ₱14.3345/kWh in May.

The adjustment means residential consumers using 200 kWh will pay about ₱30 more in their electricity bill this month.

Meralco said the generation charge climbed by ₱0.27/kWh to ₱9.0704/kWh from ₱8.7942/kWh in the previous month.

The company attributed the increase partly to higher prices in the Wholesale Electricity Spot Market (WESM), which reached ₱7.0281/kWh amid tight power supply conditions in the Luzon grid. The grid was placed under red alert from May 13 to 15 after electricity demand surpassed the record level registered in 2024.

According to Meralco, the secondary price cap was imposed 3.89 percent of the time during the period, reflecting sustained high spot market prices.

The increase was partly tempered by lower line rental and other charges following the lifting of the suspension of WESM operations on May 1.

Meralco said most customers were protected from higher line rental costs because a significant portion of these expenses was absorbed by suppliers under power supply agreements (PSAs) recently approved by regulators.

However, line rental charges from pre-EPIRA contracts involving the Sta. Rita and San Lorenzo gas plants continue to be fully passed on to consumers.

Excluding line rental adjustments, PSA charges rose by ₱0.0941/kWh, which Meralco attributed mainly to the continued depreciation of the peso and higher global prices of coal and liquefied natural gas (LNG).

Meanwhile, charges from the Sta. Rita and San Lorenzo gas facilities operated by First Gas/Prime CoreGen declined by ₱0.1569/kWh due to improved average dispatch.

Meralco said the reduction helped offset the effects of higher fuel costs associated with increased LNG use and peso depreciation, which affected 99 percent of First Gas/Prime CoreGen charges.

During the period, PSAs supplied 69 percent of Meralco’s energy requirements, while First Gas/Prime CoreGen accounted for 21 percent and WESM contributed 10 percent.

The transmission charge decreased by ₱0.1525/kWh, while taxes and other charges registered a slight increase of ₱0.0251/kWh.

Higher usage may raise bills further

Meralco also warned consumers that electricity bills could rise further due to increased power consumption during the extreme heat experienced in May.

“While there is an increase in electricity rates this month, elevated consumption patterns observed in May is also a major factor that could drive higher power bills of customers,” Zaldarriaga said.

The company encouraged consumers to closely monitor their electricity usage by reviewing the historical consumption data included in their bills and using the Meralco Appliance Calculator to better understand the energy consumption of household appliances and gadgets.

“In addition, we urge customers to learn how to read their electric meters so they can gain better visibility into their actual consumption, monitor their energy use, and adopt habits that help manage electricity costs more effectively,” Zaldarriaga said.