Meralco customers to have lower electricity rates in August 2026

Manila Electric Company (Meralco) customers will experience a slight reduction in electricity rates starting in August 2026, according to the company's announcement on Monday, August 10. The adjustment follows a decision by the Energy Regulatory Commission (ERC) to approve a multibillion-peso refund that will offset some of the rising costs faced by consumers. For a typical household consuming 200 kilowatt-hours (kWh), the monthly savings are estimated at approximately P9, translating into a decrease of P0.0428 per kWh, bringing the rate down to P14.7833 from P14.8261 in July. The reduction is primarily attributed to a P9.5-billion refund approved by the ERC. This amount equates to P0.5861 per kWh for residential customers and will be distributed over a period of six months. The refund addresses the disparity between Meralco’s Actual Weighted Average Tariff (AWAT) and its approved distribution tariff for the period spanning January to December 2025. It will be listed on customers' bills as “AWAT Refund/(Collect) 2” within the distribution section, distinct from an earlier AWAT refund of P0.4278 per kWh. Despite this benefit, the cost-cutting measures are partially offset by increased pass-through charges. These include fees collected by Meralco prior to being passed on to power generators, the grid operator, and the government. Notably, charges tied to the National Grid Corporation of the Philippines saw an increase of P0.3024 per kWh due to elevated ancillary service expenses. Taxes and other charges climbed by a net P0.2113 per kWh, with part of this increase stemming from a P0.1348-per-kWh rise in the Feed-In Tariff Allowance and additional taxes linked to the expanded use of liquefied natural gas and liquid condensate during the Malampaya gas facility’s operational downtime. Generation charges also increased by P0.0296 per kWh. Meanwhile, the ERC allowed Meralco to recover P8.7 billion in previously uncollected pass-through costs dating back to 2011–2022. This average of P0.0803 per kWh will be collected over a span of 36 months, with adjustments for generation, transmission, and system loss appearing under their respective sections on bills. The inclusion of system loss in the billing structure has drawn attention, especially following President Ferdinand Marcos Jr.'s call in his recent State of the Nation Address to remove such costs from consumer bills. He argued that citizens should not bear the burden of electricity lost through the network or stolen via illegal connections. The Department of Energy and Congress are currently engaged in efforts to enact regulatory and legislative reforms aimed at addressing these issues, though officials have noted that eliminating technical losses will necessitate upgrades to utility infrastructure. Meralco stated that its actual distribution charge for a typical residential customer has remained consistent since August 2022. While the upcoming rate change offers some respite, advocates remain cautious, emphasizing that the reduction falls short of providing substantial relief. Fr. Warren Puno, an activist priest and energy advocate based in Quezon province, acknowledged the positive step but cautioned against interpreting it as meaningful financial relief for consumers.