The Manila Electric Company (Meralco) has increased its electricity rate for residential customers in July 2026, resulting in an additional approximately P69 on the monthly bill of an average household. In an advisory issued on Friday, Meralco announced a rate hike of P0.3428 per kilowatt-hour (kWh) for the month. This brings the overall electricity charge to P14.8261 per kWh, up from P14.4833 per kWh in June. For a household consuming 200 kWh per month, this translates to an extra P69 on the bill.
Generation Charge Drives Increase
According to Meralco, the primary reason for the increase is the rise in generation charge, which went up by P0.1800 per kWh. From P9.0704 per kWh last month, it increased to P9.2504 per kWh due to higher fuel prices. The charge from Power Supply Agreements (PSAs) also rose by P0.2678 per kWh, reaching P8.8694 per kWh, attributed to the ongoing impact of tensions in the Middle East.
Wholesale Electricity Spot Market Prices Up
Meanwhile, prices in the Wholesale Electricity Spot Market (WESM) increased to P8.0337 per kWh after recording the highest electricity demand in Luzon at 14,534 megawatts (MW) on May 28, 2026. This demand spike contributed to the higher WESM charges.
Regulatory Suspension Extended
The Energy Regulatory Commission extended the suspension of the P0.0371 per kWh Green Energy Auction Allowance (GEA-All) collection until August 2026. Meralco explained that pass-through charges for generation and transmission are directly paid to power suppliers and the grid operator. The company also noted that its distribution charge remains unchanged after being reduced by P0.0360 per kWh for typical residential customers in August 2022.
