Meralco warns weaker peso could lift generation charges on customer bills

MANILA, Oct. 28, 2026 — Manila Electric Co. (Meralco) customers could see higher electricity bills in the coming months as the slide of the peso raises the cost of power the distributor buys from generators, company executives said on Wednesday.

Speaking at Meralco’s nine-month results briefing in Pasig City, regulatory management head Jose Ronald Valles said more than half of the utility’s supply sources are exposed to currency movements, with gas-fired suppliers among the most affected. Because generation costs are passed through to consumers, a weaker peso would likely push that part of the bill up, he said, adding that the company was looking for ways to soften the increase.

The peso closed at a record low of P64.17 to the US dollar on Tuesday, Oct. 27, the first time it finished past the P64 level, according to BusinessWorld. It regained some ground the next day, closing at P64.025.

Chairman and CEO Manuel V. Pangilinan said the currency’s weakness would not touch Meralco’s distribution charge because the company carries no foreign-currency debt. He told reporters the situation strengthens the case for more domestic energy sources, citing solar in particular, ABS-CBN News reported.

The warning follows an October rate increase of P0.3191 per kilowatt-hour (kWh), which brought the typical household rate to P15.0615 per kWh from P14.7424 in September, largely on higher generation costs. Meralco’s nine-month report showed its average retail rate up 15% year on year to P13.43 per kWh, with generation making up about 65% of that rate, BusinessWorld said.

On the distribution side, the Energy Regulatory Commission (ERC) has already set Meralco’s rates for the July 2026 to June 2030 regulatory period. The regulator approved a revenue requirement of about P342 billion for the four years, compared with the roughly P532 billion the company sought, and an average distribution rate of P1.48 per kWh, below Meralco’s P2.34 proposal.

Meralco kept its full-year 2026 core net income guidance at about P56.6 billion. Its nine-month core profit rose 12% to P44.8 billion, GMA News reported.

What it means for consumers

The generation charge, the largest item on a Meralco bill, moves monthly with fuel prices, spot-market costs and exchange rates. Executives did not give a figure for how much a weaker peso would add. The distribution charge is set separately by the ERC and, according to Meralco, is not affected by currency swings.