Philippines Tops Southeast Asia In Electricity Rates As Supply Woes Persist
- July 24, 2026
Table of Contents
The Philippines recorded the highest average residential electricity rate in Southeast Asia in June, with energy officials warning that consumers could face another increase in power bills next month as fuel prices continue to rise and supply constraints persist in key parts of the country.
Data from the Department of Energy (DOE) showed that the country’s average residential electricity rate reached ₱12.43 per kilowatt-hour (kWh) in June, edging past Singapore’s average by ₱0.09 per kWh. The increase was largely attributed to recurring power supply shortages, particularly in the Visayas, which forced grid operators to dispatch more expensive generating facilities to prevent widespread outages.
DOE Undersecretary Rowena Cristina Guevara said repeated yellow alerts in the Visayas grid, caused by forced outages of several power plants, have significantly pushed up electricity costs.
“They have been under yellow alert almost all the time, and that is what is driving up electricity prices in the Visayas,” Guevara said.
She added that electricity demand also remained elevated during the summer months, requiring the operation of costlier power plants instead of risking rotational brownouts.
Potential Increase In July Bills
The DOE said electricity rates could climb further if global fuel prices continue their upward trend, particularly following renewed tensions in the Middle East that have already affected oil markets.
This week, the agency announced maximum increases of ₱10.68 per liter for diesel, ₱11.77 per liter for kerosene and ₱3.65 per liter for gasoline.
Guevara said the extent of any adjustment in electricity rates will depend on fuel price movements in the coming weeks. She urged power distributors to maximize the use of lower-cost energy sources before relying on more expensive fuel-based generation.
Energy Secretary Sharon Garin likewise appealed to consumers to help ease pressure on the grid through energy conservation.
“We can also control the price of electricity depending on our consumption. If we consume less, the electric cooperatives will not be forced to use the more expensive (fuel),” Garin said.
Highest Rates Recorded In Visayas And Off-Grid Areas
DOE data showed that Southern Leyte Electric Cooperative posted the country’s highest residential electricity rate among on-grid distribution utilities in June at ₱16.57 per kWh, reflecting a significant increase in generation charges.
Northern Samar Electric Cooperative followed at ₱15.72 per kWh, while Kalinga-Apayao Electric Cooperative recorded ₱14.53 per kWh. Manila Electric Co. (Meralco), which serves Metro Manila and nearby provinces, registered one of the country’s highest rates at ₱14.48 per kWh, followed closely by Leyte IV Electric Cooperative at ₱14.46 per kWh.
In off-grid areas, where electricity generation depends heavily on oil-fired facilities, Busuanga Island Electric Cooperative recorded the highest residential rate at ₱24.92 per kWh.
The National Association of General Managers of Electric Cooperatives (NAGMEC) said generation charges for July climbed to as much as ₱9 per kWh in parts of Eastern Visayas, with Biliran Electric Cooperative (BILECO), Samar II Electric Cooperative (SAMELCO II) and Northern Samar Electric Cooperative (NORSAMELCO) among the hardest-hit utilities.
NAGMEC President Dr. Alan Laniba said many electric cooperatives with higher electricity rates still lack contracts with renewable energy suppliers, leaving them more exposed to expensive power purchases. He noted that electricity generated from renewable energy sources is exempt from the 12-percent value-added tax imposed on fossil fuel-based generation.
“Matagal na naming sinasabi na kung hindi i-renew itong mga rules, sisikat yung Pilipinas as pinakamataas na taripa ng kuryente,” Laniba said. (“We have long been saying that unless these rules are revised, the Philippines will become known for having the highest electricity tariff.”)
He added that electric cooperatives share consumers’ frustrations over rising electricity costs.
“Kung may sobra pa sa lungkot, yun ang feeling namin kasi even though we are working in the distribution utility, konsyumer din kami, I think lahat tayo malulungkot din talaga,” he said. (“If there is a feeling worse than sadness, that is what we feel because even though we work in distribution utilities, we are consumers too. I think all of us are truly saddened by this.”)
Calls For Reforms
The DOE said it is coordinating with the Energy Regulatory Commission (ERC) to ensure that distribution utilities and electric cooperatives are charging consumers correctly.
Meanwhile, the ERC has extended its no-disconnection policy for unpaid electricity bills until October and directed utilities to implement staggered or deferred payment arrangements to ease the burden on households.
ERC Chairman Nino Juan acknowledged that reducing electricity prices would take time, saying the country needs additional generating capacity to maintain adequate supply even when power plants experience unplanned outages. Around 40 electric cooperatives and private distribution utilities have also sought regulatory approval to stagger recent rate increases for June billing.
Consumer advocates and lawmakers, however, said structural reforms are needed to address persistently high electricity costs.
Power for People Coalition convenor Gerry Arances said the country’s expensive electricity reflects its continued dependence on imported fossil fuels, arguing that expanding renewable energy could help lower prices over the long term.
“Turning to expensive electricity in the spot market whenever coal plants fail is a non-solution,” Arances said, adding that distributed renewable energy and solar power offer more sustainable alternatives.
Sen. Risa Hontiveros also called for a review of the ERC’s automatic pass-through mechanism, which allows distribution utilities to recover generation and other eligible costs before regulators complete their review.
“Review first, collect later. Every centavo charged to consumers should first be justified and explained before it is passed on to them,” she said.
According to Hontiveros, generation, transmission and system-loss charges account for roughly 77 percent of residential electricity bills. She estimated that recent increases in Meralco’s generation charge and National Grid Corp. of the Philippines’ transmission charges would add about ₱222 to the monthly bill of a household consuming 200 kWh, offsetting much of the ₱60 daily wage increase set to take effect for Metro Manila minimum wage earners on July 25.
Industry groups also warned that recurring supply shortages in the Visayas threaten business operations. The Semiconductor and Electronics Industries in the Philippines Foundation (SEIPI) said forced outages disrupt production schedules, increase operating costs, and weaken the country’s competitiveness as an investment destination, emphasizing the need for stronger collaboration between government and the power sector to improve energy security.
Source:
https://www.philstar.com/headlines/2026/07/21/2543545/doe-philippines-power-rates-now-highest-sea
