Manila: Higher transmission charges will raise Manila Electric Company's (Meralco) power rates in February 2026, ending two months of reductions. In a briefing on Tuesday, Meralco vice president and head of corporate communications Joe Zaldarriaga said rates will increase by PHP0.2226 per kilowatt-hour (kWh) to PHP13.1734 per kWh. Households consuming 200 kWh per month will see an increase of about PHP45.
According to Philippines News Agency, Zaldarriaga said transmission charges rose by PHP0.1975 per kWh due to higher ancillary service costs from the reserve market and an increase of PHP0.0779/kWh in the universal charge for missionary electrification (UCME), which subsidizes power in off-grid and remote areas. The impact of higher transmission charges was partly offset by a drop in generation charges, which fell by PHP0.1073 per kWh to PHP7.639 per kWh, driven by lower rates from independent power producers. However, generation charges did not fall further due to higher prices from the wholesale electricity spot market amid tighter supply in the Luzon grid. Charges from power supply agreements also increased by PHP0.0483 per kWh ahead of scheduled maintenance shutdowns of Excellent Energy Resources Inc. and South Premier Power Corporation. Zaldarriaga said these maintenance shutdowns are routine and meant to prepare for higher electricity demand during the dry season.
Meanwhile, Zaldarriaga said Meralco will continue to grant discounts under the government's lifeline subsidy program for low-income consumers using up to 50 kWh per month, mostly beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps). Households consuming 50 kWh or less receive a 100 percent discount. Meralco also provides a 35 percent discount for those using 51-70 kWh and a 20 percent discount for those using 71-100 kWh. Under an Energy Regulatory Commission (ERC) directive, a uniform national lifeline subsidy rate of PHP0.01 per kWh will take effect in March 2026. The new discount structure will apply the following month. "We welcome this directive from the ERC which we hope will provide additional relief to our qualified customers," Zaldarriaga said.
