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Electricity rate decreases this May

Meralco announced a decrease in overall electricity rates for May 2018, amounting to PhP0.5436 per kWh for a typical household. The lower May rate is mainly due to the PhP0.4212per kWh decrease in the generation charge.

The adjustment this month brings the overall rate to PHP 10.0041 per kWh from April’s PHP 10.5477 per kWh, equivalent to a decrease of around P109 in the bill of a residential customer consuming 200kWh.

Meralco Electricity Rate decreases

Lower WESM charges bring down the generation charge

From PhP5.4735 per kWh in April, the generation charge for this month will be PhP5.0523per kWh.

Charges from the Wholesale Electricity Spot Market (WESM) decreased by PhP1.0139per kWh, despite higher demand for power in the Luzon Grid, because of various power plants previously on scheduled maintenance shutdown going back online. The share of WESM purchases to Meralco’s total requirement this month was 22%.

Cost of power from Independent Power Producers (IPPs) also went down by PhP0.5920 per kWh due to Quezon Power’s return to normal operations from its scheduled maintenance. The improvement in average plant dispatch more than offset the upward adjustment due to higher Malampaya natural gas prices resulting from the quarterly repricing that reflect recent movement of crude oil prices in the world market. IPPs provided 45% of Meralco’s total energy requirement.

Meanwhile, purchases from Power Supply Agreements (PSAs) increased by P0.2096 per kWh due to scheduled maintenance outage of Pagbilao Unit 1 and Ilijan Unit 1 and the quarterly repricing of Malampaya natural gas. The share of PSA purchases to Meralco’s total requirement this month was 33%.

Adjustments in Transmission Charge and other charges

Transmission charge to residential customers slightly decreased by PhP0.0096per kWh. With the lower generation and transmission charges, taxes and other charges also went down, by PhP0.1128per kWh this month. 

Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 34 months, after these registered reductions in July 2015. Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP.  Taxes and other public policy charges like the FIT-All are remitted to the government.   

Meralco provides energy efficiency tips for customers

As summer is at hand, Meralco once again encourages its customers to continue practicing energy efficiency initiatives to help manage their electricity consumption. These include everyday household tips that may help save energy, such as: (i) unplugging appliances when not in use to avoid “phantom load”, (ii) using the aircon at mid-setting or at 25 degrees Celsius for maximum efficiency, (iii) using a power board or strip which can supply power to several appliances at once and allows a user to conveniently turn them off simultaneously with just one switch, and (iv) maximizing natural light during daytime and keeping appliances well maintained to ensure optimal performance. For more helpful tips, customers may visit Meralco’s website at or its social media accounts, twitter @meralco and facebook at

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