Meralco maintains stable distribution charges as power rates reflect higher industry costs

The Manila Electric Company (Meralco) announced a modest adjustment in electricity rates for March, reflecting movements in industry pass-through charges while maintaining stable distribution fees for customers.

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Meralco said overall electricity rates increased by P0.6427 per kilowatt-hour (kWh), bringing the rate for a typical household to P13.8161 per kWh this month, up from P13.1734 per kWh in February. For residential customers consuming around 200 kWh, the adjustment translates to an estimated increase of about P129 in the monthly electricity bill.

The adjustment was largely driven by higher charges from the power supply chain, particularly in transmission and generation, which are costs that Meralco collects and remits directly to power suppliers, grid operators, and the government.

Transmission charges for residential customers rose by P0.2880 per kWh, mainly due to a significant increase in ancillary service costs incurred by the National Grid Corporation of the Philippines (NGCP) through the Reserve Market. These costs, which ensure the stability and reliability of the power grid, accounted for nearly half of the total transmission charge this billing period.