Meralco raises electricity rates in June, residential customers to experience higher bills

Manila Electric Company (Meralco) has announced an upward adjustment in electricity rates for June, with an increase of P0.4183 per kilowatthour.

This brings the overall rate for a typical household to P11.9112 per kWh, up from P11.4929 per kWh in May.

Residential customers consuming 200 kWh can expect their total electricity bill to increase by around P84.

The rate adjustment is attributed to the completion of distribution-related refunds triggered by a rate increase and higher prices at the Wholesale Electricity Spot Market.

Meralco clarified that the impact of the last distribution-related refund, amounting to P0.8656 per kWh for residential customers, will be felt in the June bills.

Charges from Meralco’s PSAs and IPPs decreased by P0.5871 per kWh and P0.5854 per kWh, respectively. This reduction is primarily due to improved average plant dispatch and lower coal prices.

However, the decrease in generation charge was offset by an increase of P2.0187 per kWh in charges from the Wholesale Electricity Spot Market due to tight supply conditions in Luzon.

In May, peak demand reached a record high of 12,431 MW, leading to yellow and red alerts being issued.