Electricity rates for customers of Manila Electric Company will increase in February 2026, ending two consecutive months of reductions as higher transmission-related charges feed through to consumer bills.
Meralco said overall rates will rise by PHP0.2226 per kilowatt hour, bringing the average residential rate to PHP13.1734 per kWh. Households consuming 200 kWh per month can expect their electricity bill to increase by around PHP45.
According to Meralco vice president and head of corporate communications Joe Zaldarriaga, the increase was driven mainly by higher transmission charges, which went up by PHP0.1975 per kWh. These were largely due to higher ancillary service costs sourced from the reserve market, reflecting tighter system conditions in the Luzon grid.
Transmission charges were further lifted by an increase of PHP0.0779 per kWh in the universal charge for missionary electrification. The charge funds subsidies for electricity supply in off-grid and remote areas, and its adjustment added to the upward pressure on February rates.
The impact of higher transmission charges was partly offset by lower generation charges, which fell by PHP0.1073 per kWh to PHP7.639 per kWh. Meralco attributed the decline to lower rates from independent power producers.
However, generation charges did not decline further due to higher prices in the wholesale electricity spot market amid tighter supply conditions in Luzon. Charges from power supply agreements also rose by PHP0.0483 per kWh as two major plants, operated by Excellent Energy Resources Inc. and South Premier Power Corporation, prepare for scheduled maintenance shutdowns.
Zaldarriaga said the maintenance activities are routine and are intended to ensure plant reliability ahead of higher electricity demand during the dry season.
Meanwhile, Meralco said it will continue to implement the government’s lifeline subsidy program for low-income consumers. Households using up to 50 kWh per month, most of whom are beneficiaries of the Pantawid Pamilyang Pilipino Program, will continue to receive a 100 percent discount on their electricity bills.
Customers consuming 51 to 70 kWh per month are entitled to a 35 percent discount, while those using 71 to 100 kWh receive a 20 percent discount.
Under a directive from the Energy Regulatory Commission, a uniform national lifeline subsidy rate of PHP0.01 per kWh will take effect in March 2026, with the revised discount structure applying the following month.
Meralco said the new framework is expected to provide additional relief to qualified customers even as broader power sector costs continue to place upward pressure on electricity rates.