Meralco household rate rises 32 centavos in October on pricier LNG, spot power

MANILA, Oct. 13, 2026 — Manila Electric Co. (Meralco) raised its overall rate for a typical household by P0.3191 per kilowatt-hour (kWh) in October, ending two consecutive monthly reductions and bringing the rate to P15.0615 per kWh from P14.7424 in September.

The distributor said on Tuesday that a residential customer using 200 kWh would see a bill increase of around P64.

Higher generation costs drove the adjustment, with the generation charge up P0.4973 per kWh. Charges from First Gas and Prime CoreGen rose P3.2206 per kWh as the plants used liquefied natural gas, whose price remains high because of the Middle East conflict, and as a weaker peso affected the roughly 89% of their costs priced in dollars. Spot-market (WESM) charges climbed P3.5167 per kWh on bill adjustments and tighter Luzon supply in September.

Those increases were partly offset by a P0.7567-per-kWh drop in charges from power supply agreements, helped by South Premier Power Corp.’s use of cheaper Malampaya gas. First Gas/Prime CoreGen, WESM and the supply agreements accounted for about 24%, 2% and 74% of Meralco’s requirements, respectively.

Charges from the National Grid Corp. of the Philippines fell P0.1384 per kWh, mostly because lower Reserve Market costs cut the ancillary service charge. Taxes and other charges posted a net decrease of P0.0398 per kWh: a P0.0634 increase in the universal charge for missionary electrification was outweighed by lower taxes, including the removal of value-added tax on the system loss charge.

The October rate does not include the Energy Regulatory Commission’s newly announced distribution rate reset, which set an average of P1.48 per kWh for Meralco’s July 2026–June 2030 regulatory period, nor the P2.64-billion refund the regulator ordered. Meralco said it had not yet received copies of either decision. Its release said the refund, at P0.1733 per kWh for residential customers, would start with November 2026 billing over six months.

A Meralco vice president, Lawrence Fernandez, told reporters the company needed to study the actual decisions before it could estimate their effect on customers, GMA News reported.

What it means for consumers

October bills rise mainly on generation costs that Meralco passes through without markup. Starting November, bills should begin showing the refund credit alongside the new distribution rate; the net effect has not yet been quantified.