POWER distributor Manila Electric Co. (Meralco) announced on Friday that its rates will increase by P0.3428 per kilowatt-hour (kWh), bringing the overall increase for a typical household to P14.8261 per kWh for July from P14.4833 last month.
Meralco said the increase was mainly due to higher generation charges and taxes during the period.
For its components, the generation charge rose by P0.1800 per kWh, largely due to higher fuel prices.
Meralco said First Gas/Prime CoreGen charges rose by P0.3613 per kWh, following the one-month scheduled maintenance shutdown of the Malampaya natural gas facility, which started June 15, 2026, forcing the Sta. Rita and San Lorenzo power plants to use the more expensive liquefied natural gas (LNG).
Meanwhile, charges from post-Epira Power Supply Agreements (PSAs) rose by P0.2678 per kWh due to the impact of the continuing Middle East conflict on the global energy market.
Lastly, Wholesale Electricity Spot Market (WESM) prices also increased as demand in Luzon reached a record high of 14,534 MW on May 28, 2026. Meralco added that tighter power supply conditions on the grid pushed spot market prices higher, resulting in more frequent imposition of the secondary price cap at 11.1 percent of the time.
Meralco said that First Gas/Prime CoreGen, PSAs, and WESM accounted for 22 percent, 72 percent, and 6 percent, respectively, of its total energy requirement for the period.
Taxes also registered a P0.0960 per kWh increase, primarily due to First Gas/Prime CoreGen’s use of LNG, which is subject to 12 percent value-added tax (VAT), resulting from the unavailability of VAT-exempt Malampaya gas.
Furthermore, transmission and other charges both increased by P0.0668 per kWh.
Meanwhile, the Energy Regulatory Commission (ERC) extended the suspension of collection of the P0.0371-per-kWh Green Energy Auction Allowance (GEA-All) until August 2026 to help cushion the impact of high electricity rates on consumers.
Meralco noted that the firm pays pass-through charges for generation and transmission to power suppliers and the grid operator, respectively. Taxes, universal charges, and Feed-in Tariff Allowance are all remitted to the government.
Meralco added that its distribution charge, on the other hand, has remained since the P0.0360 per kWh reduction for a typical residential customer beginning August 2022.
No disconnection policy
With the July power rate hike, Sen. Risa Hontiveros urged the ERC to adopt a “no disconnection” policy for Meralco customers contesting allegedly erroneous electricity bills, saying consumers should not be forced to pay disputed charges to avoid losing power while their complaints are under review.
The call comes amid a growing number of consumer complaints reporting unusually high electricity bills allegedly caused by incorrect meter readings.
“Consumers who were erroneously charged should not be forced to pay disputed charges just to keep their lights on. It’s not their fault that the meter reading is wrong. Consumers shouldn’t have to adjust,” Hontiveros said in Filipino.
Her appeal follows reports of billing errors, including one case in which a household was billed for electricity consumption despite its circuit breakers being switched off while the family was away on vacation. Manila Electric Company (Meralco) later acknowledged that the bill stemmed from a meter reader’s error.
Under current rules, however, the ERC has advised consumers disputing their electricity bills to pay the amount under protest to avoid service disconnection while the complaint is being investigated.
Questioning the policy, Hontiveros said it places an unfair financial burden on consumers already struggling with rising living costs.
The senator noted that while the Magna Carta for Residential Electricity Consumers guarantees the right to accurate metering and allows consumers to challenge erroneous bills, existing regulations do not explicitly prohibit utilities from collecting disputed charges or disconnecting service while a complaint remains unresolved.
She said this regulatory gap leaves consumers vulnerable, especially those with limited financial resources who may have no choice but to pay disputed bills to avoid losing electricity.
Hontiveros urged the ERC to strengthen consumer protection measures by ensuring a faster and more equitable dispute-resolution process.
WITH A REPORT FROM
JAVIER JOE ISMAEL
“ERC should do something about this. Their mandate is to protect consumers’ welfare. They should ensure a fast, fair, and effective process for resolving billing disputes, and that consumers are not put at risk,” she said.
Hontiveros said she will file a Senate resolution directing the Senate Committee on Energy to conduct an inquiry, in aid of legislation, into the reported cases of erroneous meter readings and billing disputes.
