Meralco Sees Higher Electricity Rates This April

Meralco Sees Higher Electricity Rates This April

  • April 11, 2025

Electric bills may go up this April for Meralco customers as generation and transmission charges are expected to rise amid extreme heat.

“We are still waiting for some billings, but indications point to a possible increase in the generation and transmission charges,” Joe Zaldarriaga, vice president and head of corporate communications at Meralco, said last April 8.

Zaldarriaga explained that limited power supply contributed to the price spike at the Wholesale Electricity Spot Market (WESM), where electricity is traded as a commodity.

In March, WESM prices rose sharply to P5.34 per kilowatt-hour (kWh). Almost double the P2.73 per kWh recorded in February, it marked the highest level in seven months. This sharp increase was driven by rising demand and a drop in supply caused by unexpected plant outages.

Zaldarriaga said that based on initial data, power plant outages led to an average capacity loss of nearly 1,000 megawatts (MW) as electricity demand rose by more than 1,000 MW—further widening the supply gap.

Available supply fell by 4.4 percent to 19,611 MW, while overall demand climbed by 5.9 percent to 13,670 MW.

(Also read: DOE says summer power demand to exceed 2024 levels)

Implementation of refund

Despite the upward trend in electricity rates, customers may see some relief as Meralco has started implementing a refund this April, which was approved by the Energy Regulatory Commission (ERC).

(Also read: Meralco Refund Update: What Consumers Need to Know)

“We hope that the start of the implementation of the refund approved by the [Energy Regulatory Commission] will help mitigate these possible increases in these bill components. This is equivalent to around 20 centavos per kWh downward adjustment for residential customers starting this month,” said Zaldarriaga.

The P19.96-billion refund will be distributed over 36 months and will appear as a separate line item in customer bills. For residential users who consume 200 kWh per month, the refund could lower their monthly bill by around P38.00.

In March, Meralco raised its power rate by P0.2639 per kWh due to higher transmission charges, bringing the average rate to P12.2901 per kWh. This meant an additional P53.00 for households using 200 kWh.

 

Sources:

https://www.bworldonline.com/corporate/2025/04/09/664801/meralco-sees-spike-in-april-electricity-rates/

https://qa.philstar.com/headlines/2025/04/09/2434559/higher-meralco-rates-seen-april

https://tribune.net.ph/2025/04/09/meralco-sees-higher-power-rates-in-april

https://business.inquirer.net/518669/meralco-sees-possible-hike-in-power-rates-for-april

 

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