Meralco wins first rate increase in 15 years from Philippine regulators

The Energy Regulatory Commission (ERC) has granted Manila Electric Co. (Meralco) approval to raise its distribution charges by approximately 13 centavos per kilowatt-hour, effective immediately for the company's 8.2 million customers across the metro and nearby regions.

Under the regulatory decision, Meralco's average distribution rate will climb to P1.48 per kWh, representing the first adjustment to consumer electricity bills in 15 years. The increase reflects the utility's costs in maintaining and upgrading its distribution infrastructure, according to ERC documentation.

The approval comes after Meralco's petition to the independent power regulator, which reviewed the company's operational expenses, capital investments, and service reliability metrics. The ERC said the adjustment was necessary to ensure Meralco can continue reinvesting in grid modernization and system reliability improvements.

For an average household consuming 200 kilowatt-hours monthly, the rate hike translates to an additional cost of roughly P26 per billing cycle. Consumer groups had previously urged the ERC to reject or minimize the increase, citing concerns about the financial burden on low-income families during economic challenges.