Regulators have approved a distribution rate increase for Manila Electric Co. (Meralco), marking the first such adjustment for the utility in 15 years.
Key facts
- •The ERC approved a new average distribution rate of P1.48 per kWh, up from P1.35 per kWh.
- •This is the first distribution rate adjustment for Meralco in 15 years.
- •The approved revenue requirement of P342 billion is 36% less than the P532 billion Meralco requested.
- •More than 8 million customers are affected by the rate adjustment.
- •Distribution rates had been effectively frozen since 2015 due to delays in regular rate reviews.
The Energy Regulatory Commission (ERC) has approved a new average distribution rate of P1.48 per kilowatt-hour for Manila Electric Co. (Meralco). This adjustment, which represents an increase of approximately 13 centavos from the previous rate of P1.35 per kWh, marks the first time the utility has raised its distribution charges in 15 years.
By the numbers
Regulatory Approval and Rate Details
The approved rate follows a review process in which Meralco initially requested a revenue requirement of P532 billion over four years. The ERC ultimately approved a reduced amount of P342 billion, which is 36% lower than the utility's original request. The distribution charge is one component of the total electricity bill, which also includes generation, transmission, and taxes.
Impact on Consumers
The rate increase will affect more than 8 million Meralco customers. While the new average distribution rate is set at P1.48 per kWh, the utility has not yet specified when the change will appear on consumer bills or how it will impact final residential rates. As of September, the overall residential electricity rate was P14.7424 per kWh, with a household consuming 200 kWh paying approximately P2,950 monthly.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Philippine Daily Inquirer, Rappler.
