Meralco, NGCP rates go down in May

MANILA, May 17 ------ Instead of a rate hike, there will be a small reduction in Meralco rates, as well as lower transmission rates for May.

Meralco announced a marginal reduction in electricity rates for May, as regulatory interventions offset rising generation costs fueled by the war in the Middle East. The country’s largest power distributor said the overall rate for a typical household will dip by P0.0151 per kilowatt-hour (kWh), bringing the cost to 14.3345 pesos per kWh from P14.3496 in April.

The utility credited the decline to proactive measures by the Energy Regulatory Commission (ERC) designed to shield consumers from high global energy prices. These include an accelerated refund of P14.2 billion and the temporary suspension of certain environmental taxes. “Despite initial indications of an increase, Meralco power rates this May had a modest reduction,” said Joe Zaldarriaga, Meralco Vice President and Head of Corporate Communications. He noted that the measures helped "cushion the impact of potentially high rates as a result of the geopolitical tensions."

The reduction comes despite a spike in the generation charge, which rose to P8.7942 per kWh due to higher prices at the Wholesale Electricity Spot Market (WESM) and a weakening Philippine peso. Costs from natural gas plants also climbed as fuel prices rose and the currency depreciation affected dollar-denominated contracts. However, these hikes were countered by a P0.2254 per kWh increase in residential refunds and a net decrease in taxes. Consumers also began seeing the impact of a 2025 law granting value-added tax exemptions for power generated from indigenous natural gas.

NGCP RATES ALSO GO DOWN

Meralco’s overall rate may become even lower as the National Grid Corp of the Philippines also announced that transmission rates will be lower for the month after a reduction in transmission wheeling rates and ancillary services (AS). The NGCP said overall average transmission rates for the April 2026 billing period dropped by 8.8 percent to P1.5983 per kWh, from March's P1.7526 per kWh.

Average AS rates decreased by 5.02 percent to P0.8088 per kWh, compared to P0.8516 per kWh in March, the NGCP said. Transmission wheeling rates refer to what NGCP charges for its core service of delivering electricity, while AS rates cover the pass-through costs of services sourced from the Reserve Market and from providers with bilateral contracts with NGCP to stabilize the grid during power supply-demand imbalances, the company said. “For the May 2026 electric bill of the end consumers, NGCP charges only 60 centavos per kWh for the delivery of its services,” NGCP explained, adding that AS still accounts for the bulk of transmission charges. “NGCP does not earn from AS rates, as these are remitted directly to generating companies, and it does not benefit from any movement in their prices,” said NGCP.

BUT BILLS MAY STILL RISE

Meralco, meanwhile, advised that while the per-unit rate has fallen, total bills may still rise as the sweltering dry season drives up the use of electric fans and air conditioning. “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,” he added. Meralco urged the public to optimize thermostat settings and unplug idle appliances.

Source: news.abs-cbn.com